Behind every third smartphone, every fifth chip, and nearly a third of the world's largest ships lies a manufacturing powerhouse whose staggering production figures are reshaping global supply chains: South Korea.
Key Takeaways
- In 2022, South Korea's manufacturing industry produced 3.42 million tons of semiconductors, accounting for 19.2% of global production
- The index of industrial production for manufacturing in South Korea reached 112.5 in December 2023 (2020=100), up 4.1% year-over-year
- South Korea's automobile manufacturing output was 4.22 million units in 2022, including 3.44 million passenger cars
- In 2022, manufacturing employment totaled 4.12 million persons, representing 16.8% of total employment
- Average monthly wages in manufacturing reached 4.52 million KRW in 2022, up 4.3% from 2021
- Manufacturing labor productivity per worker was 512 million KRW in 2022
- Manufacturing exports totaled 408.7 billion USD in 2022, 88.5% of total exports
- Semiconductor exports from South Korea reached 128.7 billion USD in 2022, up 29.6%
- Automobile exports 59.2 billion USD in 2022, ranking 4th globally
- Manufacturing FDI inflows 25.6 billion USD in 2022
- Domestic investment in manufacturing facilities 120.4 trillion KRW in 2022
- R&D expenditure in manufacturing 92.7 trillion KRW in 2022, 82% of national total
- Patent applications from manufacturing 210,000 in 2022
- R&D personnel in manufacturing 420,000 full-time equivalents in 2022
- Semiconductor R&D spending 32.1 trillion KRW in 2022
South Korea’s manufacturing sector shows robust, tech-driven growth across exports and investment.
Employment Statistics
- In 2022, manufacturing employment totaled 4.12 million persons, representing 16.8% of total employment
- Average monthly wages in manufacturing reached 4.52 million KRW in 2022, up 4.3% from 2021
- Manufacturing labor productivity per worker was 512 million KRW in 2022
- Unemployment rate in manufacturing sector was 2.8% in 2023
- Female employment in manufacturing was 1.45 million in 2022, 35% of total manufacturing workforce
- Youth employment (15-29) in manufacturing 450,000 persons in 2022
- Manufacturing establishments numbered 142,500 in 2022
- Average working hours in manufacturing 198.4 hours per month in 2022
- Labor force participation rate in manufacturing 45.2% for ages 25-54 in 2022
- Manufacturing jobs added 25,000 net in 2022
- Wage growth in semiconductors manufacturing 6.1% in 2022 to 5.8 million KRW monthly
- Automotive manufacturing employment 780,000 in 2022
- Shipbuilding workforce 180,000 persons in 2022
- Electronics manufacturing employees 1.2 million in 2022
- Chemical industry employment 320,000 in 2022
- Steel sector jobs 210,000 in 2022
- Machinery manufacturing labor 450,000 persons in 2022
- Labor turnover rate in manufacturing 18.5% in 2022
- Manufacturing R&D personnel 420,000 in 2022, 45% of national total
- Average age of manufacturing workers 42.3 years in 2022
- Part-time workers in manufacturing 8.2% of workforce in 2022
- Union membership rate 12.1% in manufacturing 2022
- Manufacturing employment by firm size: SMEs 3.1 million (75%) in 2022
- Overseas manufacturing employment by Korean firms 1.8 million in 2022
- Manufacturing manufacturing employment growth 1.2% in 2023
- Temporary workers 28% of manufacturing employment in 2022
Employment Statistics Interpretation
Behind the gleaming statistics of high wages and productivity lies the true engine of Korea's economy: a vast, slightly graying, and surprisingly nimble manufacturing workforce that is both the backbone of its prosperity and a demographic tightrope walker, juggling youth shortages and temporary labor while its most brilliant minds are busy inventing the future in R&D labs.
Export and Import Data
- Manufacturing exports totaled 408.7 billion USD in 2022, 88.5% of total exports
- Semiconductor exports from South Korea reached 128.7 billion USD in 2022, up 29.6%
- Automobile exports 59.2 billion USD in 2022, ranking 4th globally
- Petroleum products exports 92.4 billion USD in 2022
- Ship exports value 48.1 billion USD in 2022
- Display panels exports 45.6 billion USD in 2022
- Steel exports 52.3 billion USD in 2022
- Machinery exports 78.9 billion USD in 2022
- Chemical products exports 81.2 billion USD in 2022
- Wireless communication devices exports 22.4 billion USD in 2022
- Exports to China from manufacturing 132.5 billion USD in 2022
- Exports to USA 112.3 billion USD in 2022
- EU manufacturing exports destination 68.7 billion USD in 2022
- Manufacturing imports 312.4 billion USD in 2022
- Semiconductor imports 45.2 billion USD in 2022
- Crude oil imports for manufacturing 120.1 billion USD in 2022
- Trade surplus in manufacturing 96.3 billion USD in 2022
- Export share of semiconductors in total exports 31.5% in 2022
- Auto parts exports 28.7 billion USD in 2022
- Battery exports (EV) 12.4 billion USD in 2022, up 83%
- Manufacturing export growth to Vietnam 15.2% in 2022
- Import dependency on energy for manufacturing 95.2% in 2022
- Top export product: Integrated circuits 85.6 billion USD in 2022
- Refined petroleum exports 78.3 billion USD in 2022
- Plastic exports 18.9 billion USD in 2022
- Export unit value index for manufacturing 115.4 in 2022 (2015=100)
- Manufacturing export volume index 132.7 in 2022 (2015=100)
- Imports of machinery 45.8 billion USD in 2022
Export and Import Data Interpretation
While South Korea's manufacturing sector proudly floats on a colossal $96.3 billion trade surplus built by its tech and auto titans, the nation remains nervously anchored by a 95.2% energy import dependency, making its economic powerhouse both remarkably robust and precariously fuel-thirsty.
Investment and Capital
- Manufacturing FDI inflows 25.6 billion USD in 2022
- Domestic investment in manufacturing facilities 120.4 trillion KRW in 2022
- R&D expenditure in manufacturing 92.7 trillion KRW in 2022, 82% of national total
- Semiconductor fab investment 45.2 trillion KRW in 2022 by Samsung and SK Hynix
- Battery manufacturing investment 28.1 trillion KRW in 2022
- Automotive sector capital investment 15.6 trillion KRW in 2022
- Shipbuilding investment 8.9 trillion KRW in 2022
- Display industry capex 12.3 trillion KRW in 2022
- Steel mill investment 10.2 trillion KRW in 2022
- Chemical plant investments 18.4 trillion KRW in 2022
- Machinery equipment investment 22.7 trillion KRW in 2022
- SME manufacturing loans outstanding 450 trillion KRW in 2022
- Overseas investment by manufacturing firms 35.8 billion USD in 2022
- Government subsidies for manufacturing R&D 15.2 trillion KRW in 2022
- Private equity investment in manufacturing startups 2.1 billion USD in 2022
- Capital stock in manufacturing 1,250 trillion KRW in 2022
- Investment rate in manufacturing 18.5% of value added in 2022
- Green manufacturing investment 9.8 trillion KRW in 2022
- Digital transformation capex 14.5 trillion KRW in 2022
- M&A deals in manufacturing 45.2 billion USD in 2022
- Factory construction permits value 28.7 trillion KRW in 2022
- Return on capital employed in manufacturing 12.4% in 2022
- Debt-to-equity ratio in manufacturing firms averaged 85.2% in 2022
- Manufacturing R&D intensity 4.9% of sales in 2022
Investment and Capital Interpretation
South Korea’s manufacturing sector has clearly decided that putting all its technological eggs in a few extremely expensive, research-intensive baskets is a gamble worth taking, as evidenced by the eye-watering sums flowing into semiconductors, batteries, and a relentless digital and green transformation.
Production Volume and Growth
- In 2022, South Korea's manufacturing industry produced 3.42 million tons of semiconductors, accounting for 19.2% of global production
- The index of industrial production for manufacturing in South Korea reached 112.5 in December 2023 (2020=100), up 4.1% year-over-year
- South Korea's automobile manufacturing output was 4.22 million units in 2022, including 3.44 million passenger cars
- Shipbuilding production in South Korea totaled 1.85 million CGT in 2022, representing 32% of the world total
- Steel production in South Korea hit 71.1 million metric tons in 2022, ranking 6th globally
- Chemical manufacturing output value reached 285.4 trillion KRW in 2022, growing 8.2% from 2021
- Display panel production (LCD+OLED) in South Korea was 68.2 million square meters in 2022
- Petroleum refining capacity in South Korea stood at 3.12 million barrels per day in 2023
- Machinery production index for manufacturing was 108.7 in 2023 (2020=100)
- Food manufacturing output grew 3.5% to 112.3 trillion KRW in 2022
- Textile manufacturing production volume was 1.2 million tons in 2022
- Pharmaceutical production value reached 28.5 trillion KRW in 2022, up 7.8%
- Rubber and plastics production output was 45.6 million tons in 2022
- Non-metallic mineral products output value 92.1 trillion KRW in 2022
- Primary metal manufacturing production index 105.4 in 2023
- Fabricated metal products output grew 5.2% to 156.7 trillion KRW in 2022
- Electronic components production value 210.4 trillion KRW in 2022
- Electrical equipment manufacturing output index 110.2 in 2023
- Transport equipment production excluding autos was 12.5 trillion KRW in 2022
- Furniture manufacturing output value 8.9 trillion KRW in 2022
- Other manufacturing production totaled 45.2 trillion KRW in 2022
- Manufacturing PMI averaged 51.2 in 2023, indicating expansion
- Capacity utilization rate in manufacturing was 75.8% in Q4 2023
- Inventory-to-shipment ratio for manufacturing was 0.82 in 2023
- Manufacturing value added grew 2.1% in 2022 at constant prices
- Overall manufacturing production index 109.3 in 2023 (2020=100)
- Coke and petroleum products output 112.7 trillion KRW in 2022
- Manufacturing production value at current prices was 1,892 trillion KRW in 2022
Production Volume and Growth Interpretation
South Korea's manufacturing sector is not just globally significant—it’s a meticulously balanced industrial orchestra, cleverly conducting semiconductors, ships, steel, and even snacks, with the precision of a world-class maestro ensuring every section, from autos to pharmaceuticals, hits its note for a harmonious and expanding economic symphony.
Technological Innovation and R&D
- Patent applications from manufacturing 210,000 in 2022
- R&D personnel in manufacturing 420,000 full-time equivalents in 2022
- Semiconductor R&D spending 32.1 trillion KRW in 2022
- AI patents granted to Korean manufacturing firms 1,250 in 2022
- 5G-related manufacturing patents 890 in 2022
- EV battery technology patents 2,450 filed in 2022
- Robotics R&D investment 4.2 trillion KRW in 2022
- Manufacturing digitalization index 78.5 in 2022 (out of 100)
- ICT R&D in manufacturing 25.6 trillion KRW in 2022
- Biotech manufacturing patents 1,120 in 2022
- Hydrogen tech R&D projects 156 funded in 2022
- Smart factory adoption rate 42% in manufacturing in 2022
- 3D printing patents 340 in manufacturing 2022
- Quantum computing R&D spend 1.2 trillion KRW in 2022
- Manufacturing tech venture funding 3.8 billion USD in 2022
- ISO 9001 certifications in manufacturing 12,500 in 2022
- R&D tax credits claimed 8.5 trillion KRW in 2022
- Collaborative R&D projects between firms and unis 2,450 in 2022
- Manufacturing tech exports (royalties) 4.1 billion USD in 2022
- Automation robot installations 28,000 units in 2022
- Big data analytics adoption 65% in large manufacturers 2022
- Nanotechnology patents 890 in manufacturing 2022
- Green tech R&D 12.3 trillion KRW in 2022
- Tech commercialization rate 45.2% for manufacturing R&D in 2022
Technological Innovation and R&D Interpretation
South Korea's factories have become temples of intense, hyper-specialized innovation, where an army of researchers spends mountains of money not just to make things, but to meticulously reinvent every component, material, and process for the digital age, aiming to patent and profit from the future before it arrives.
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