Jasiyon: "Domestic Industrial Structure Shifts from Manufacturing to ICT and Bio"

[Asia Economy Reporter Oh Ju-yeon] An analysis has emerged that the domestic industrial structure is shifting from manufacturing-centered to service industries, particularly ICT and the bio industry.

On the 18th, the Korea Securities Association and the Capital Market Research Institute held a policy symposium on the theme of 'COVID-19 and Finance' at the Diamond Hall of the Yeouido Federation of Korean Industries Conference Center. At this event, the Capital Market Research Institute predicted that post-COVID-19, the new normal (low interest rates, low growth, low inflation), digital innovation, and stakeholder capitalism will accelerate.

On the 18th, Hyo-seop Lee, Senior Research Fellow at the Korea Capital Market Institute, is presenting at the "COVID-19 and Finance" policy symposium held at the Federation of Korean Industries.

Senior Research Fellow Lee Hyo-seop of the Capital Market Research Institute said, "After COVID-19, the market will advance the Fourth Industrial Revolution era as new growth industries emerge based on abundant liquidity."

Regarding the global industrial structure, it is already shifting from traditional manufacturing to platform and ICT industries, and domestically, the scale of ICT and bio industries is also growing.

In 2009, six out of the top 10 companies by market capitalization were traditional manufacturers, but as of March 2020, only three remain in traditional manufacturing. Instead, bio, healthcare, and ICT industries have filled the gap.

Amid these changes, he emphasized that future investment opportunities can be found in intangible assets.

In the past, investment opportunities arose in stocks, derivatives, bonds, and alternative investments, but since COVID-19, new growth industries based on intangible assets are expected to emerge. In this context, the value of domestic listed companies will be evaluated not by traditional price-earnings ratio (PER) or price-to-book ratio (PBR), but by intangible asset values such as PPR (Price Patent Ratio).

Researcher Lee stated, "At the end of Q1 2020, the KOSPI PBR was 0.7, the lowest level compared to major countries' national indices and historically a low point," forecasting that an era will come when companies are evaluated based on intangible asset value. He added, "KOSPI and KOSDAQ companies possess excellent intellectual property in ICT and bio sectors, so they have high long-term growth potential."

Accordingly, financial investment companies should expand sustainable strategies such as asset management services, impact investing, venture capital brokerage and investment, seek new investment opportunities in intangible assets, Pre-IPO, and emerging markets, and promote enterprise-wide ICT platform innovation.

In his closing remarks, he said, "COVID-19 should be an opportunity, not a crisis for Korea," and concluded his presentation hoping that "Korea will be remembered as the day it hit the lottery."

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