Key Takeaways
- In 2022, South Korea's manufacturing production index stood at 108.5 (2020=100), reflecting a 3.2% year-on-year growth driven by semiconductors and automobiles
- The semiconductor manufacturing sector in South Korea produced 1.47 million tons of semiconductors in 2023, accounting for 18.5% of global output
- Automobile production in South Korea reached 4.22 million units in 2022, with exports comprising 78.9% of total production
- South Korea's manufacturing employment totaled 4.12 million persons in 2023, representing 16.5% of total employment
- Average monthly wages in manufacturing were KRW 4.82 million in 2023, up 3.1% YoY
- Manufacturing labor productivity per hour was USD 45.2 in 2022
- South Korea's manufacturing exports reached USD 643.7 billion in 2023, accounting for 85% of total exports
- Semiconductor exports totaled USD 128.9 billion in 2023, up 7.8% YoY
- Automobile exports were USD 64.2 billion in 2023, with 3.95 million units shipped
- Manufacturing R&D expenditure was KRW 112.4 trillion in 2022, 82% of national total R&D
- R&D intensity in manufacturing: 5.8% of value added in 2023
- Private sector manufacturing R&D: KRW 92.7 trillion in 2022
- Manufacturing total factor productivity grew 1.8% YoY in 2023
- Labor productivity in manufacturing: USD 42,500 per worker in 2022
- Energy intensity in manufacturing: 0.12 toe per KRW million value added in 2023
South Korea's manufacturing industry is a globally competitive powerhouse driven by semiconductors and automobiles.
Employment and Labor
- South Korea's manufacturing employment totaled 4.12 million persons in 2023, representing 16.5% of total employment
- Average monthly wages in manufacturing were KRW 4.82 million in 2023, up 3.1% YoY
- Manufacturing labor productivity per hour was USD 45.2 in 2022
- Youth employment (15-29) in manufacturing was 8.2% of sector workforce in 2023
- Female employment share in manufacturing reached 28.4% in 2022
- Manufacturing unemployment rate was 2.9% in 2023
- Average working hours in manufacturing were 198 hours per month in 2023
- Semiconductor industry employed 250,000 workers in 2023
- Automotive sector jobs totaled 780,000 in 2022
- Shipbuilding employment was 120,000 persons in 2023, up 5%
- Steel industry workforce stood at 145,000 in 2022
- Chemical manufacturing employed 210,000 workers in 2023
- Labor dispute incidents in manufacturing fell to 45 in 2023
- Manufacturing job openings averaged 180,000 per month in 2023
- Vocational training participants in manufacturing: 450,000 in 2022
- Part-time workers in manufacturing: 12.5% of total employment in 2023
- Foreign workers in manufacturing: 420,000 (10.2%) in 2023
- Labor productivity growth in manufacturing: 2.8% YoY 2023
- Unit labor cost index in manufacturing: 102.4 (2020=100) in 2023
- Manufacturing employment growth rate: 1.2% in 2023
- Skilled worker shortage in manufacturing: 25% of firms reported in 2023 survey
- Overtime hours average: 12.4 hours/month in manufacturing 2023
- Unionization rate in manufacturing: 18.7% in 2022
- Wage premium for manufacturing workers: 15.2% above national average in 2023
- Manufacturing apprenticeships: 35,000 enrolled in 2023
- Injury rate per 10,000 workers in manufacturing: 28.5 in 2022
- Electronics manufacturing employment: 1.1 million in 2023
- Manufacturing sector added 45,000 jobs in 2023
- Labor force participation rate in manufacturing ages 15-64: 62.3% in 2023
Employment and Labor Interpretation
Exports and Trade
- South Korea's manufacturing exports reached USD 643.7 billion in 2023, accounting for 85% of total exports
- Semiconductor exports totaled USD 128.9 billion in 2023, up 7.8% YoY
- Automobile exports were USD 64.2 billion in 2023, with 3.95 million units shipped
- Shipbuilding export orders: 2,200 vessels worth USD 102 billion in 2023
- Steel exports: 19.3 million tons valued at USD 17.5 billion in 2022
- Petrochemical exports grew 5.4% to USD 45.6 billion in 2023
- Display panel exports: USD 38.2 billion in 2023
- Machinery exports: USD 78.4 billion, up 4.1% in 2023
- Battery exports: USD 22.1 billion in 2023
- Pharmaceutical exports: USD 9.8 billion, growth 12.3% in 2023
- Top export destination for manufacturing: China at 22.5% share in 2023
- US market share for Korean manufacturing exports: 18.7% in 2023
- EU imports from Korean manufacturing: USD 55.3 billion in 2023
- Export dependency ratio for manufacturing: 92% in 2023
- Manufacturing import value: USD 412.5 billion in 2023
- Trade surplus in manufacturing goods: USD 231.2 billion in 2023
- Electronics exports to Vietnam: USD 25.4 billion in 2023
- Auto parts exports: USD 42.7 billion in 2023
- Wireless communication equipment exports: USD 45.1 billion
- Refined petroleum exports: USD 32.8 billion in 2023
- Export growth rate for manufacturing: 1.2% in 2023 despite global slowdown
- Share of high-tech exports in manufacturing: 42.3% in 2022
- Manufacturing export price index: 115.6 (2015=100) in 2023
- Number of manufacturing export firms: 45,200 in 2023
- Trade balance with ASEAN for manufacturing: +USD 45.6 billion in 2023
- FDI in manufacturing exports promotion: USD 12.4 billion inflows 2023
Exports and Trade Interpretation
Investment and R&D
- Manufacturing R&D expenditure was KRW 112.4 trillion in 2022, 82% of national total R&D
- R&D intensity in manufacturing: 5.8% of value added in 2023
- Private sector manufacturing R&D: KRW 92.7 trillion in 2022
- Government R&D funding to manufacturing: KRW 19.8 trillion in 2023
- Patent applications from manufacturing: 210,500 in 2023
- Semiconductor R&D investment: USD 45.2 billion in 2023
- Automotive R&D spending: KRW 18.5 trillion in 2022
- Shipbuilding R&D: KRW 1.2 trillion in 2023
- Steel R&D investment grew 6.2% to KRW 2.8 trillion
- Chemical R&D: KRW 8.4 trillion in 2023
- Capital investment in manufacturing: KRW 450 trillion in 2023, up 2.5%
- FDI inflows to manufacturing: USD 18.7 billion in 2023
- Venture capital in manufacturing tech: KRW 15.6 trillion in 2022
- R&D personnel in manufacturing: 520,000 in 2023
- Manufacturing innovation centers: 150 funded in 2023
- AI-related R&D in manufacturing: KRW 3.2 trillion in 2023
- Green tech R&D investment: KRW 12.1 trillion in manufacturing 2023
- Robotics R&D: KRW 1.8 trillion
- Biotech manufacturing R&D: KRW 4.5 trillion in 2022
- Number of manufacturing R&D projects: 12,500 in 2023
- R&D tax credits claimed by manufacturing: KRW 9.7 trillion in 2022
- Collaborative R&D between firms and universities: 4,200 projects in manufacturing 2023
- Manufacturing value added per R&D dollar: KRW 12.4 million in 2023
- Overseas R&D centers by Korean manufacturers: 450 in 2023
- Investment in smart factories: KRW 25 trillion cumulative by 2023
Investment and R&D Interpretation
Production and Output
- In 2022, South Korea's manufacturing production index stood at 108.5 (2020=100), reflecting a 3.2% year-on-year growth driven by semiconductors and automobiles
- The semiconductor manufacturing sector in South Korea produced 1.47 million tons of semiconductors in 2023, accounting for 18.5% of global output
- Automobile production in South Korea reached 4.22 million units in 2022, with exports comprising 78.9% of total production
- Shipbuilding output in South Korea totaled 1.95 million CGT in 2023, leading the world with a 32% global market share
- Steel production in South Korea was 67.1 million metric tons in 2022, ranking 6th globally
- Chemical manufacturing output grew by 4.1% in 2023 to KRW 142 trillion
- Display panel production value in South Korea hit KRW 45.6 trillion in 2022, with OLED panels at 65% share
- Machinery production index increased by 2.8% YoY to 112.4 in December 2023
- Petroleum refining output was 817 million barrels in 2022
- Food manufacturing production reached KRW 78.3 trillion in 2023, up 3.5%
- Textile manufacturing output declined 1.2% to KRW 12.5 trillion in 2022
- Metal products production index was 105.6 in 2023
- Electronics manufacturing value added was 25.4% of total manufacturing in 2021
- Battery manufacturing capacity reached 1,200 GWh in 2023
- Pharmaceutical production grew 5.2% to KRW 28.1 trillion in 2022
- Rubber and plastics output increased 4.3% YoY in 2023
- Furniture manufacturing production was KRW 8.7 trillion in 2022
- Paper and pulp production totaled 12.4 million tons in 2023
- Non-metallic minerals output grew 2.1% to KRW 35.6 trillion
- Electrical equipment production index hit 118.2 in Q4 2023
- Precision instruments manufacturing value was KRW 15.2 trillion in 2022
- Apparel production declined 5.4% to KRW 4.1 trillion in 2023
- Leather goods output was KRW 1.8 trillion, down 2.7%
- Printing and recording media production at KRW 6.3 trillion in 2022
- Other manufacturing output KRW 22.4 trillion, up 1.8%
- Manufacturing PMI was 49.2 in January 2024, indicating contraction
- Capacity utilization rate in manufacturing averaged 75.6% in 2023
- Inventory-to-shipment ratio was 0.85 in manufacturing Q4 2023
- New orders index for manufacturing rose 4.7% YoY in 2023
Production and Output Interpretation
Productivity and Efficiency
- Manufacturing total factor productivity grew 1.8% YoY in 2023
- Labor productivity in manufacturing: USD 42,500 per worker in 2022
- Energy intensity in manufacturing: 0.12 toe per KRW million value added in 2023
- Manufacturing value added growth: 2.4% in 2023
- Semiconductor productivity index: 132.5 (2015=100) in 2023
- Automobile assembly efficiency: 95.2 vehicles per employee per year in 2022
- Shipbuilding labor productivity: USD 450,000 per worker in 2023
- Steel output per employee: 463 tons in 2022
- Chemical industry value added per worker: KRW 180 million in 2023
- Smart factory adoption rate: 42% of manufacturers in 2023, boosting productivity 15%
- Manufacturing defect rate average: 0.85% in 2023
- On-time delivery rate in manufacturing: 92.3% in 2023 survey
- Inventory turnover ratio: 5.8 times per year in manufacturing 2023
- Digital transformation index for manufacturing: 68.4/100 in 2023
- Energy efficiency improvement: 2.1% YoY in manufacturing 2023
- Automation rate in manufacturing: 65% of processes in 2023
- Multi-factor productivity growth: 1.5% annual average 2018-2023
- Manufacturing GDP contribution: 26.8% in 2023
- Output per hour worked in manufacturing: KRW 68,500 in 2023
- Carbon productivity in manufacturing: KRW 4.2 million per ton CO2 in 2023
- Supply chain efficiency score: 87/100 for Korean manufacturers 2023
Productivity and Efficiency Interpretation
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