NABO Industry Trends and Issues (No. 24)
Published on 26 September 2019
Published by Industry & Employment Analysis Division of the Economic Analysis Bureau
I. Household Income, Real Estate Market, Financial and Commodities Market Trends
(Household Income) The monthly average per household (nominal) income for 2Q19 increased by 3.8% YoY, while the (nominal) disposable income increased by 2.7%.
(Real Estate Market) In August 2019, house and apartment prices nationwide witnessed a smaller decline with volatility rates of –0.05% and –0.14%, MoM, respectively.
(Financial and Commodities Market) As the US-China trade dispute overlapped with prospects of an expansionary monetary policy, risk indicators exhibited mixed signals while interest rates and stock prices declined.
II. Economic Spillover Effects of the Renewable Energy Industry
In light of the worldwide expansion of the renewable energy power generating equipment market, renewable energy should be considered not only as a source of energy but also as part of the equipment industry. As a result of an input-output analysis, the renewable energy industry has a stronger effect on production inducement compared to the nuclear or thermal power industries, and has a stronger correlation with other industries. However, since the technological competitiveness of Korea’s renewable energy industry falls behind countries with advanced technology, Korea needs to review ways to secure technological and price competitiveness as well as foster the equipment industry.
III. Analysis of the Global Competitiveness of the Korean Electric and Autonomous Vehicle Industry
While the trade volume of Korea’s auto industry recorded a declining annual trend of –1.34% on average over the past five years, the trade volume of its electric and autonomous vehicles exhibited strong growth over the same period with average annual growth of 106.69%. Upon conducting an analysis of the global competitiveness of five major countries in terms of electric and autonomous vehicles, it was found that the Korean electric and autonomous vehicle industry specializes in exporting to the global market. However, it was found that the industry mainly imports from the US, Japan and China—but not from Germany. As of 2018, the individual sectors within the Korean electric and autonomous vehicle industry appear to produce lower quality products than the US and Germany. Therefore, technological competitiveness should be enhanced through research and development, thereby pioneering export markets for high value-added products.