Minister of Trade, Industry and Energy Yoon Sang-jick tours MCNEX Co., an autonomous driving-related parts maker, in Gasan-dong, western Seoul.(Photos:MOTIE)

The Koran parts and materials industry, once blamed for contributing to a worsening trade deficit in favor of Japan, has turned its fortunes around. 

The Ministry of Trade, Industry and Energy (MOTIE) said the parts and materials industry racked up $66.7 billion in exports and $40.7 billion in imports, netting a $26 billion (28 trillion won) trade surplus in the first quarter of this year. The trade surplus figure marks an all-time high. 

The figures, compiled and released by MOTIE on April 9, showed that the electronic parts segment raked in $23.6 billion worth of exports, up 11.2 percent over the same period last year. It was trailed by the general machinery parts sector, which posted $6.3 billion in exports, and the electric machinery segment, which raked in $6 billion worth of exports, registering a 4.8 percent increase and a 9.0 percent rise, respectively, from one year earlier. 

By area, materials and parts exports to China logged $23.3 billion in the first quarter of 2015, up 6.3 percent over $21.9 billion in the same period last year. The figures accounted for 34.7 percent of the nation’s total exports. Next came the United States, to which Korea exported $6.8 billion.  

Thanks to the excellent performances in China and the United States, Korea’s dependence on Japanese parts and materials imports, dubbed the Achilles Tender of Korean trade, has been fast declining. It signifies that the nation is getting out of an industrial structure in which Korea imports parts and materials from Japan for processing and re-exporting. The Korean parts and materials industry, which once fully depended on foreign imports, is one of the industrial fields that contributes to boosting exports. The feat was owed to large and small Korean companies’ balanced growth. Making the most of the solid platform Samsung and LG Electronics have established, Korean SMEs and mid-size superstars armed with their own R&D capabilities are finding it to explore foreign markets. 

One of the success stories is Segos, a steel slide rail maker. The company, which succeeded in localizing slide rails for fridges, ovens and other home appliances, has now become a supplier of steel slide rail products to GE and Haier. Kim Jong-ha, Segos’ chief in charge of R&D, said his company’s rapid rise in exports to the United States was attributable to the elimination of a 3.9 percent tariff imposed on products, accruing from the effectuation of the Korea-U.S, FTA. 

MOTIE Minister’s Congratulatory Message on NewsWorld’s 22nd Anniversary

Minister of Trade, Industry and Energy Yoon Sang-jick has sent a commemorative message to NewsWorld in celebration of the English economic magazine’s 22nd anniversary, which fell in March. 

Following are excerpts of MOTIE Minister Yoon’s message.

I congratulate NewWorld on its 22nd anniversary. NewsWrold has established itself as a leading magazine in Korea and abroad, committed to introducing the Korean economy to foreign audiences since its inception. We extend our thanks for your contributions to publicizing Korean products abroad and introducing Korea’s investment environment and potential to foreign countries.

The Park Geun-hye government has been sticking to open-door policies by signing FTAs with major trading partners, including China. Making the most of the FTA network, Korea hopes to see more of its products hit global markets, and attract global innovative companies and technology into Korea to help Korean and foreign companies grow together as members of the creative economy. In order to make these efforts pay off, it’s most important for us to maintain communications with the global economy. And NewWorld’s more aggressive support is considered worthwhile.