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  • Definition of the Machinery Industry Close
    Definition of the Machinery Industry
    According to the Korean Standard Industrial Classification (KISC), the machinery industry refers to five types of businesses:
    general machinery, electrical machinery, precision machinery, transport machinery, and metal products (fabricated metal).
    "Five Machinery Categories in the KISC"
    Please refer to the information below
    Machinery Industry (KISC 9th revision)
    • Metal products C25
      • Structural metal products
      • boilers
      • metallic tanks and containers
      • boilers
      • fabricated metal products
      • tools
      • mechanical elements
      • weapons and ammunition
    • General machinery C29
      • Internal combustion engines
      • fluid power equipment
      • pneumatic or hydraulic machines
      • valves
      • power transfer units
      • industrial ovens
      • lifting and handling equipment
      • refrigerating and air-conditioning equipment
      • filtering and distilling equipment
      • packaging and filler
      • Special-purpose machinery
      • agricultural machinery
      • machinery for mining and construction
      • machinery for textiles
      • semiconductor manufacturing machinery
      • metal casting
    • Electrical machinery C28
      • Electric motors, generators
      • electricity distribution and control apparatuses
      • insulated wire and cable
      • batteries
      • electric tubes and bulbs
      • lighting equipment
      • electric welders
      • domestic appliances
    • Precision machinery C27
      • Medical instruments
      • measuring and testing equipment
      • glasses
      • photo and optical instruments
      • clocks
    • Transport machinery C30-31
      • Engines for motor vehicle
      • motor vehicles
      • bodies for motor vehicles and trailers
      • parts for motor vehicles
      • Electrical devices for motor vehicles
      • aircraft and parts
      • two-wheeled motor vehicles
      • bicycles
      • ships
      • combat motor vehicles
    Large view of images
    ※ Source: Statistics Korea
  • Global Competitiveness based on an Ecosystem for Related Industries Close
    Global Competitiveness based on an Ecosystem for Related Industries
    Korea’s machinery industry has maintained price competitiveness, and an ecosystem connecting related industries, such as automobiles, aviation, shipbuilding, semiconductors, and displays, is well established.
    Korea ranks 3rd in the global semiconductor market, 6th in precision equipment production and 7th in exports.
    It is expected that the expansion of smart factories—one of Korea’s key industries—will help strengthen production capacity of the manufacturing system.
    ※ Precision equipment: Machine tool industry that includes all machines used for cutting and plasticity processing.
    Korea’s robot density (the number of robots per 10,000 human workers) is the 2nd highest in the world, and Korea has introduced the 4th largest number of industrial robots in the world.
    "Status of Korean Machinery Industry"
    Please refer to the information below
    • Semiconductor devices: Market size 3rd in the world, USD 9.97 billion (2019)
    • Precision equipment: Production 6th in the world, USD 52.87 million (2018), Exports 8th in the world, USD 26.11 million (2018)
    • Robots : Robot density 2nd in the world, 744 robots per 10,000 human workers (2018), Number of industrial robots 4th in the world, 38,000 units (2018)
    Large view of images
    ※ Source: Semiconductor Equipment and Materials International (April 2020), Gardner, Korea Machine Tool Manufacturers’ Association, International Federation of Robotics (IFR)
  • Growth Prospect as Korea’s Core Industry Open
    Growth Prospect as Korea’s Core Industry
    The machinery industry, out of all manufacturing industries, ranked 6th in terms of production, 1st in terms of the number of companies, 3rd in terms of the number of employees, and 4th in terms of added-value.
    The average annual export growth over the past five years from 2014 to 2019 was 3.0%, and the average annual trade balance growth was 15.6%.
    The export of semiconductors, in particular, recorded USD 5.24 billion, up 9.4% YoY.
    "The Machinery Industry within Korea’s Manufacturing Industry"
    (2018)
    The Machinery Industry within Korea’s Manufacturing Industry KISC Category, Production, Number of companies, Number of employees, Added-value
    KISC Category Production Number of companies Number of employees Added-value
    Code Item KRW trillion proportion ranking Company proportion ranking Thousand persons proportion ranking KRW trillion proportion ranking
    C Manufacturing (10~33) 1,576 100 - 69,513 100 - 2,956 100 - 565 100 -
    29 Other machinery and equipment manufacturing 123 7.8 6 9,731 7.8 6 336 7.8 6 47 8.3 4
    ※ Source: Statistics Korea, Research on the Mining and Manufacturing Industries, Based on companies with at least ten employees
    ※ Source: Statistics Korea, Research on the Trends of the Mining and Manufacturing Industries and Research on the Mining and Manufacturing Industries; Korea Customs Services, Trade Statistics
  • Investment Flow into General Machinery and Machine Tools in Korea Open
    Investment Flow into General Machinery and Machine Tools in Korea
    Foreign investment in the machinery industry focuses mainly on general machinery and machine tools, and it showed a trend of growth in 2019 compared to the previous year.
    One good example is Volvo Group Korea, which acquired a construction machinery business from Samsung Heavy Industries in 1998 and entered the Korean market.
    Volvo Group Korea’s construction machinery business department is its global hub of excavator production, exporting over 80% of production across the world, including Europe, North America, and Asia.
    Trends of Foreign Investment in Machinery and Equipment - Notification of foreign investment in machinery 2018 : 96, 2019 : 104 / , Amount of foreign investment in machinery 2018:863USD million, 2019:1,162USD million Large view of images
    ※ Source: Investment. Notification Statistics Center (INSC)
    Proportion of Foreign Investment per Type of Machinery (2019) - General purpose machinery(63%), , Processing and machine tools(7.2%), Medical devices(7.1%), Machines for other purposes(4.0%), Optical devices and clocks(2.8%) Large view of images
  • Government Policies to Develop Robot Technology Open
    Government Policies to Develop Robot Technology
    Following the enforcement of the Act on Special Measures for Strengthening Competitiveness of the Materials, Components,
    and Equipment Industries announced in April 2020, the manufacturing machinery industry has received attention.
    The Korean government’s strong willingness to develop industrial robots is also expected to vitalize the machinery industry.
    In August 2019, the Korean government announced the third Intelligent Robot Basic Plan targeting 2019 to 2023,
    in which seven hubs for robot testing, certification, demonstration, and support for companies are designated.
    The Industrial Convergence Promotion Act was revised to introduce the regulatory sandbox.
    ※ Seven hubs: Robot Certification Center (Daegu), Safety Robots · Underwater Robot Center (Gyeongsangbuk-do), Manufacturing Robot Technology Center (Gyeongsangnam-do), Marine Robot Center (Busan),
    Health Care Robot Center (Gwangju), Robot Industrialization Support Center (Daejeon), Converging Component Center (Bucheon)
    "Major Robot Development Performance Indicators"
    Major Robot Development Performance Indicators Category, R&D, Performance Indicators
    Category R&D Performance Indicators
    Robots for Manufacturing Horizontal articulated robots, dual arm robots, co-robots
    • Developed dual arm robot (Korea Institute of Machinery and Materials, 2016)
    • Co-robot under development (Company D, from 2019)
    Robots for Service professional service Medical, logistics, safety robots, etc.
    • Launched autonomous logistics robots (Company Y, 2018)
    • Launched laparoscopic surgery robots (Company M, 2018)
    personal service Social robots, HRI technology Developed social robots for family use (Company I, 2016)
    Robot Components Motors, reducers, sensors, etc. Developed Korean robot-based module (Company P, 2018)
    ※ Source: Third Intelligent Robot Basic Plan collaboratively developed by relevant organizations (August 2019)
  • Machinery Clusters in the metropolitan area and Gyeongsangnam-do Open
    Machinery Clusters in the metropolitan area and Gyeongsangnam-do
    A majority (63.6%) of Korean machinery companies are located in the metropolitan area and Gyeongsangnam-do, and the machinery industry in Gyeongsangnam-do,
    in particular, accounts for the second largest proportion within the Korean machinery industry. Gyeongsangnam-do has an excellent ecosystem for machinery with Changwon National Industrial Complex from connecting materials and parts, to develop complete products.
    Doosan Machine Tools and Hyundai Wia, which rank among the top 10 in the world in terms of safety, are located in the province.
    "Primary Machinery Clusters in Korea"
    Please refer to the information below
    • Incheon Machinery Cluster: Hyundai Construction Equipment, Doosan Infracore
    • Ansan, Banwol, Sihwa Machinery Clusters in Gyeonggi-do: Dong Yang Piston, Daemo Engineering, Hyundai Robotics
    • Daegu Machinery Cluster: 현대 로보틱스
    • Changwon Machinery Cluster: Hyundai Wia, Doosan Machine Tools, Energy and Machinery Korea
    Large view of images
    ※ Support: Korea Institute for Industrial Economics and Trade
Invest KOREA
Machinery/Robots/Other Manufacturing PM
Lee Chul Soon Key Industries Promotion Team
T.+82-2-3460-7724
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