Korea's Mining and Manufacturing Sector Posts Gains in All Four Key Indicators in 2024

South Korea's mining and manufacturing sector saw increases in all four major indicators last year—number of establishments, employees, shipments, and value added—compared to the previous year, driven by the semiconductor industry's recovery and a low base effect from 2023 when all indicators had declined.

According to preliminary results of the 2024 Mining and Manufacturing Survey released by the National Data Center on Thursday, shipments in the mining and manufacturing sector reached 2,090.2 trillion won ($1.46 trillion) last year, up 97.7 trillion won (4.9%) from the previous year.

By industry, electronics and telecommunications, which includes semiconductors, led the overall shipment growth with 340.5 trillion won, an increase of 71.2 trillion won (26.4%). Other sectors posting gains included other transportation equipment (11.7 trillion won), chemical products (5.9 trillion won), petroleum refining (5.7 trillion won), automobiles (5.1 trillion won), fabricated metal products (3.6 trillion won), and food products (3 trillion won).

In contrast, shipments declined in electrical equipment (down 5.9 trillion won), machinery and equipment (down 5.2 trillion won), primary metals (down 3.6 trillion won), and non-metallic minerals (down 1.9 trillion won). Shipments per establishment rose 4.2% to 283.7 trillion won.

Value added in the mining and manufacturing sector totaled 572.3 trillion won last year, up 77.2 trillion won (11.4%). Electronics and telecommunications (55.2 trillion won) and automobiles (7.5 trillion won)—Korea's two export powerhouses—accounted for most of the increase. Fabricated metal products (3.1 trillion won), food products (1.5 trillion won), and machinery repair (1.5 trillion won) also posted gains.

However, value added contracted in primary metals (down 2.8 trillion won), chemical products (down 900 billion won), non-metallic minerals (down 800 billion won), and textile products (down 200 billion won). Value added per establishment rose 10.7% to 101.9 trillion won.

The number of mining and manufacturing establishments reached 73,890 last year, up 508 (0.7%) from a year earlier. Food product companies increased by 269 (4.1%) as K-food gained popularity worldwide, while textile products (down 92) and rubber and plastics (down 89) saw declines.

Employment in the mining and manufacturing sector totaled 3.046 million, an increase of 62,000 workers (2.1%).