LG 2000 Annual Report Download - page 19

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Industry Overview
Growth of for Korea's electronic industries,
principally semiconductors, computers, and IT
products, remained healthy in 2000. This growth
was primarily supported by recovery of the world
economy and the global IT boom. Computer and IT
industries grew by more than 20 percent while the
electronic appliance industry grew by
approximately 16 percent.
Based on factory prices, production in the
electronic appliance industry increased 16 percent
to W13 trillion in 2000. As demand for digital and
home appliances increased abroad, exports grew 21
percent year-on-year. Similarly, domestic sales rose
22 percent over the previous year. High-value-
added, multi-functional appliances, including large-
flat screen televisions, large-sized refrigerators, and
air conditioners, performed very well. In spite of
the recent entrance of Japanese suppliers in the
domestic market, new product development and
fresh marketing activities kept domestic suppliers
in a comfortable position.
Korea's computer industry performed splendidly
with a 33 percent production increase in 2000, in
addition to growth from 1999. Exports increased 34
percent through the rapid development of DVD-
ROM drives and LCD monitors. Domestic sales
rose 41 percent in accordance with increased use of
the Internet and the expansion of e-commerce.
Production growth of telecommunication devices
reached 20 percent in 2000. The manufacture of
mobile handsets, totaling 70 percent of
telecommunication devices production, increased
28 percent from 1999. Total exports of
telecommunication devices amounted to US$8
billion, a 37 percent increase from the previous
year. Of all exports, mobile handsets accounted for
US$5 billion, a 45 percent increase from 1999.
Domestically, telecommunication devices and
mobile handsets had increased sales of 25 and 13
percent, respectively. In the first half of 2000,
mobile handsets exhibited 59 percent production
growth, but the second half of the year showed a 26
percent decrease, due to the government's
cancellation of mobile phone subsidies to buyers.
Due to adverse conditions, both domestic and
abroad, all appliances, computers, and
telecommunication devices are expected to
slowdown in 2001, in comparison with 2000.
Appliances will grow 11 percent while computers
and telecommunication devices will increase 13
percent.
The economy and industry reviews herein are, in large part, based on
working papers compiled by the LG Economic Research Center.
19
117.8
118.8
121.5
1998
1999
2000
CPI
-6.7%
10.9%
8.8%
1998
1999
2000 P
GDP Growth
1995=100