IT Industry: "Post-COVID Demand Explosion Possible, Must Not Miss Opportunity"

KCCI to Discuss 'COVID-19 Response' Jointly with Four Industry Associations Including Semiconductor, Display, Electronics, and Battery on the 21st
Need for 'Strengthened Investment Support,' 'Improved Environmental Regulations,' and 'Flexible Workforce Management' to Seize Opportunities Post-COVID

[Asia Economy Reporter Changhwan Lee] IT industry experts have argued that opportunities arising after the novel coronavirus infection (COVID-19) should not be missed.

The Korea Chamber of Commerce and Industry announced that on the 21st, it held an industry countermeasure meeting in response to COVID-19 jointly with four industry associations including semiconductors, displays, electronic information and communications, and batteries. This was the second meeting following the one on the 16th with device industries such as automobiles and steel.

Participants at the meeting unanimously agreed that it is necessary to proactively prepare not only to minimize immediate damage caused by the spread of COVID-19 but also to seize opportunities in the Post-Corona era. This is because a recovery in the economy after COVID-19 and a new industrial landscape centered on non-face-to-face interactions and content are expected, which will likely lead to active adoption of new technologies.

Industry experts forecast that if the COVID-19 situation ends quickly, pent-up demand in semiconductors and displays will explosively increase in the second half of the year. Battery demand will steadily grow due to the spread of electric vehicles, and home appliances are expected to see expanded sales as health appliances become essential after COVID-19.

Song Myungseop, a research fellow at Hi Investment & Securities who presented on the semiconductor sector, evaluated that “COVID-19 has not yet significantly impacted the semiconductor market, and if the spread in the U.S. and Europe eases within the second quarter, the impact of COVID-19 on the semiconductor industry will be minimal.”

Song added, “As strong recoveries were experienced after past epidemics, if pent-up demand for IT devices explodes in the second half, the semiconductor market recovery could gain even more momentum.”

Jung Wonseok, a researcher at Hi Investment & Securities who presented on the display sector, said, “The display industry will inevitably face short-term supply disruptions and long-term demand sluggishness,” but also expressed optimism, stating, “LCD production is gradually normalizing from the second quarter, and if the global COVID-19 situation ends early, there is a possibility of a strong demand rebound for IT devices due to economic recovery.”

Kim Jisan, head of the research center at Kiwoom Securities for the battery and home appliance sectors, said, “Despite COVID-19, the electric vehicle market is maintaining growth, and the secondary battery market, a core component, also has a bright outlook,” emphasizing, “Localization of core materials and equipment and enhancement of next-generation battery technology should be central to COVID-19 response efforts to widen the gap with competing Chinese companies.”

Kim also forecasted, “In the home appliance sector, interest in health and hygiene has increased due to COVID-19, and health appliances will become essential appliances. The spread of the Untact trend will also accelerate the commercialization of robots.”

◆ To seize opportunities after COVID-19, strengthening investment support, improving environmental regulations, and flexible workforce management are necessary = At the countermeasure meeting, industry participants mainly discussed two directions: addressing current difficulties caused by the COVID-19 situation and proactively responding with policies to capture post-COVID-19 opportunities.

Nam Giman, full-time vice chairman of the Korea Semiconductor Industry Association, said, “With the Untact era unfolding, the semiconductor industry has been less affected by COVID-19,” and argued, “To activate new semiconductor investments and achieve early economic recovery, various deregulations and bold government support policies are needed.”

Seo Gwanghyun, full-time vice chairman of the Korea Display Industry Association, also said, “In the LCD market, Korea has already been overtaken by China, so Korea must maintain leadership in the OLED (organic light-emitting diode) market where it has technological superiority,” requesting, “Please boldly support innovative technology development, such as expanding tax credit targets through new growth R&D.”

Jung Soonnam, full-time chairman of the Korea Battery Industry Association, said, “The battery market will continue to grow strongly due to advanced countries’ environmental regulations and mandatory sales of eco-friendly vehicles,” and urged, “To prepare for increased demand after the end of COVID-19, improvement of the 52-hour workweek system is necessary so companies can flexibly manage their workforce.”

Meanwhile, attendees requested that the tightened entry restrictions for overseas arrivals be eased. In fact, essential personnel for overseas production in semiconductors, displays, and secondary batteries have not been able to be deployed on time, and home appliances are facing difficulties in product testing and certification suspended due to COVID-19.

The Korea Display Association said, “Large-scale personnel dispatch is needed to establish OLED new product production lines in China, India, and Vietnam, but entry restrictions in each country are blocking this,” and requested, “Please strengthen diplomatic cooperation to issue visas for businesspeople and allow special entry.”

Jin Hong, full-time vice chairman of the Korea Electronics and Telecommunications Industry Promotion Association, said, “Due to the spread of COVID-19, government operations related to product testing and certification in various countries have been suspended, making it impossible to obtain certification for export products, causing export disruptions,” and added, “International cooperation is urgently needed, such as temporarily exempting testing and certification for regulated products until testing and certification operations normalize by country.”

Woo Taehee, full-time vice chairman of the Korea Chamber of Commerce and Industry, said, “It is fortunate that Korea’s leading IT industries are holding up amid the COVID-19 situation,” but also emphasized, “Restrictions on overseas entry and exit for businesspeople and difficulties in testing and certification must be promptly resolved so that companies do not fall into hardship due to COVID-19.”

Vice Chairman Woo stressed, “As the saying goes, ‘Don't waste a good crisis,’ it is time to proactively prepare for opportunities such as the reorganization of the new industrial order and adoption of new technologies after COVID-19.”

This content was produced with the assistance of AI translation services.