"Korean TV Ranks No.1 Globally but Lags in Service and Peripheral Device Competitiveness"

South Korea, led by Samsung and LG, holds the top market share competitiveness in the global TV market, but its industrial structure centered on large corporations, a narrow domestic market, and insufficient capabilities in small and medium procurement sectors such as smart peripheral devices have been pointed out as weaknesses that need to be addressed.

Diagnosis Results of Competitive Advantages by TV Value Chain

On the 26th, the Korea Institute for Industrial Economics and Trade (KIET) announced in its report titled "Diagnosis of Competitiveness by Value Chain in the TV Industry and Policy Directions" that South Korea's competitiveness in the TV industry value chain structure, composed of six sectors?industrial design, R&D and design, procurement, production, service, and demand?is at the world’s number one level. In particular, the comprehensive scores for industrial design, R&D and design, and production sectors were 98, 96.8, and 95.5 respectively, all overwhelmingly ranking first, demonstrating very strong competitiveness.

On the other hand, the AM (After Market) and service sectors, where smart services that provide various content and services through TVs are core, scored 83.2 points, lagging behind the United States (95.5 points), which is active in smart application innovations (such as smart home and home training) based on TV platforms and operating systems. Demand also scored 74.7 points, identified as a weakness due to lower competitiveness compared to China (90.3 points) and the United States (79.9 points), which have larger market sizes.

KIET advised that it is necessary to continue premiumization of TV products while innovating products reflecting market changes such as smart and hyper-connectivity, eco-friendliness, and high efficiency. South Korea should proactively respond to the future TV market by securing future competitiveness in core procurement sectors and hasten the preparation of policy measures to resolve smart home security issues.

The global TV market is expected to grow centered on OLED TVs from 2022 to 2023. The sales share of OLED TVs is projected to increase from 5.9% in 2019 to 14.4% in 2023. Especially, in the high-end product segment priced over $2,000, the sales share of OLED TVs is likely to surge from 39.1% in 2021 to 45.6% in 2023.

Shim Woo-jung, a senior researcher at KIET’s Growth Engine Industry Research Division, stated, "As a policy task, it is necessary to discover market-dominant products through institutional support that aids R&D and new market creation, and simultaneously foster advanced human resources to develop future TV core technologies." He added, "As improving energy efficiency emerges as an important task, it is necessary not only to conduct R&D but also to spread high efficiency through incentive systems such as purchase subsidies for high-efficiency products." Furthermore, he explained, "It is essential to secure added value in the service sector, which is expected to increase further in the future, by strengthening service convergence capabilities of smart peripheral devices such as set-top boxes for TVs, and policy measures to resolve security threats are also needed."

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