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Overview
Korea's Display Industry in Figures
(Unit: KRW billion, %)
| 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
|---|---|---|---|---|---|---|---|
| Production Amount | 5,330.3 | 6,485.5 | 13,497.6 | 21,338.3 | 31,829.9 | 35,193.1 | 40,045.7 |
| (year-on-year rate of increase) | (36.3) | (21.7) | (108.1) | (58.1) | (49.2) | (10.6) | (13.8) |
| Production Index (2000=100) |
100.0 | 121.7 | 253.2 | 400.3 | 597.2 | 660.2 | 751.3 |
| Value of Shipments | 5,133.2 | 6,490.2 | 13,202.2 | 21,286.2 | 31,585.1 | 35,189.7 | 40,143.3 |
| No. of Companies | 65 | 120 | 163 | 202 | 234 | 277 | 310 |
| No. of Employees | 11,610 | 17,843 | 28,879 | 43,372 | 51,451 | 63,125 | 76,718 |
| Value-Added | 2,973.5 | 1,900.8 | 6,670.7 | 9,277.1 | 14,933.6 | 15,422.7 | 14,973.3 |
| (year-on-year rate of increase) | (21.9) | (-36.1) | (250.9) | (39.1) | (61.0) | (3.3) | (-2.9) |
| Tangible Assets | 4,324.7 | 3,999.9 | 6,008.7 | 9,253.1 | 12,475.1 | 16,072.7 | 21,663.0 |
| (ratio versus manufacturing) | (1.6) | (1.5) | (2.3) | (3.5) | (4.7) | (5.6) | (7.0) |
| Export (US$ million) |
264 | 196 | 233 | 706 | 1,254 | 4,700 | 12,260 |
Source: Korea National Statistical Office (NSO), Report on Mining and Manufacturing Survey
Note :
- 1) Based on businesses with 5 or more employees
- 2) Standard Industrial Classification (KSIC) Code. For LCD (Liquid Crystal Display): no. 32196
- 3) Average Exchange Rate as of 2007: US$1=KRW929.2
Industry Overview
From 2002, Korea's display industry has emerged as a global leader in production, leaping ahead of Japan, the previous top performer. Korea has also become the world's largest producer of Flat Panel Display (FPD) within the shortest time by accumulating IT and mass-production technologies during the analog to digital transition period.
The Korean display industry has made significant progress in such key macroeconomic indicators as production, employment, facilities investment, and exports, thus positioning itself as one of the representative industries operating globally in the same light as semiconductors and mobile phones.
The ratio of the display industry to GDP in production stood at 2.1% and 4.4% for 2002 and 2006, respectively, while the ratio of value-added rose to 4.6% from 2.8% during the same period. The value-added is higher in ratio than production, thus helping the Korean manufacturing industry focus more on high value-added.
Production/Value-Added to GDP Trends in the FPD Industry
Production/Value-Added to GDP Trends in the FPD Industry
Production amount
- 2000 : 1.4%
- 2001 : 1.1%
- 2002 : 2.8%
- 2003 : 3.6%
- 2004 : 4.9%
- 2005 : 4.9%
- 2006 : 4.6%
Value-added
- 2000 : 0.9%
- 2001 : 1.1%
- 2002 : 2.1%
- 2003 : 3.2%
- 2004 : 4.0%
- 2005 : 4.1%
- 2006 : 4.4%
Source : NSO. [Report on mining and Manufaturing Survey]
Exports
Current Status of Trade Balance for the FPD Industry
(Unit: US$ million, %)
| 2003 | 2004 | 2005 | 2006 | 2007 | CAGR (2003~7) | |
|---|---|---|---|---|---|---|
| Exports | 706 | 1,254 | 4,700 | 12,260 | 16,723 | 120.6 |
| (203.4) | (77.5) | (274.9) | (160.8) | (36.4) | ||
| Ratio vs. Total Exports | 0.4 | 0.5 | 1.7 | 3.8 | 4.5 | - |
| Imports | 528 | 758 | 780 | 874 | 2,675 | 50.0 |
| (54.5) | (43.6) | (2.9) | (12.1) | 14,049 | ||
| Trade Balance | 179 | 496 | 3,920 | 11,387 | 14,049 | - |
| Trade Specification Index | 0.144 | 0.247 | 0.715 | 0.867 | 0.724 |
Source: Korea International Trade Association (KITA).
- 1) The rates in brackets ( ) represent year-on-year rates of increases, and trade specification index= (exports-imports)/(exports+imports)
- 2) Classification Code: MTI no. 8361 for FPD
Beginning in 2005, when exports surged, displays have sharply grown in terms of trade surplus within the shortest amount of time. The main reasons behind this increase in exports include stabilization of sales price, increase in demand, and growth in exports for module factories of Korean subsidiaries operating overseas.
- The ratio of displays to the Korean electronics industry in terms of exports has been on the rise as shown below: 10.6% (2006) → 13.3% (2007) → 14.5% (January-February in 2008)
FDI in the Korean Display Industry
With rapid growth in the display industry, inbound FDI has been increased by companies from advanced countries in recognition of Korea's high level of technology, and more investment will be made as Korea continues to lead the next generation display sector.
Investment by Major Foreign Firms into Korea
| Name of Company | Year of Investment | Location | Area | Product |
|---|---|---|---|---|
| Merck | 2002 | Pyeongtaek, Gyeonggi-do | LCD | Liquid Crystal Compounds |
| Chisso | 2005 | Overcoat, Polyimides | ||
| Sumitomo Chemical | 1998/2002 | Color Regist/Color Filter | ||
| NHT | 2005 | Glass Panels | ||
| HOYA | 2005 | Photomask | ||
| Nitto Denko | 1999/2004 | Polarizer Film | ||
| NEG(PEG) | 2005 | Paju, Gyeonggi-do | Glass Panels | |
| Photronics(PKL) | 1993 | Cheonan, S. Chungcheong | Photomask | |
| JSR | 2003 | Ochang, N. Chungcheong | Color Regist | |
| Central Glass | 2005 | Ochang, N. Chungcheong | PDP | Glass Panels |
| Toshiba(Harrison) | 2003 | Ochang, N. Chungcheong | LCD | CCFL |
| Asahi Glass | 2004 | Gumi, N. Gyeongsang | Glass Panels | |
| 3M | 1996/2005 | Hwasung, Gyeonggi-do | LCD, PDP | Optical Film, |
| Thermal Management Films |
Source: Korea Display Industry Association (KDIA)
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