Semiconductor Slump... Regional Exports Also Decrease by 7.5%

2023 Annual Regional Economic Trends
Sejong 23% Chungnam 26%↓
Manufacturing Production Decreased by 3.8%

Last year, due to the semiconductor downturn, the production and exports of light manufacturing industries in various regions also saw a significant decline. In particular, exports in Sejong and Chungnam regions, where semiconductor companies are concentrated, decreased by more than 20%.

According to the '2023 Annual Regional Economic Trends' released by Statistics Korea on the 26th, nationwide light manufacturing production decreased by 3.8% compared to the previous year.

This was due to reduced production of semiconductors, electronic components, chemical products, and others. Production significantly declined in Busan (-9.6%), Gyeonggi (-8.3%), and Chungbuk (-6.6%), with production decreasing in 15 out of the 17 metropolitan cities and provinces nationwide. Only Gangwon (1.1%) and Incheon (0.2%) saw slight increases, supported by growth in medical, precision, and pharmaceutical product production.

Exports also decreased nationwide by 7.5% compared to the previous year, as exports of memory semiconductors, computer peripherals, processors, and controllers declined.

In particular, Chungnam (-26.1%), Sejong (-23.0%), and Chungbuk (-14.1%), where semiconductor companies are concentrated, showed double-digit decreases. Meanwhile, Gyeongnam (15.2%), Daegu (3.5%), and Jeju (0.1%) saw increases due to higher exports of passenger cars, ships, and others.

Consumption also decreased nationwide by 1.4% due to the impact of high inflation and high interest rates. In particular, Jeju (-6.3%), Jeonnam (-4.7%), and Gyeonggi (-4.0%) experienced declines as sales at duty-free shops and specialty retail stores decreased. While prices rose by 3.6%, Seoul (3.9%), Busan (3.7%), and Gwangju (3.7%) saw higher-than-average increases due to rising dining-out costs.

Construction orders fell by 19.1% due to the downturn in the construction market. In Daegu (-46.1%), construction orders were cut in half, and Jeonnam (-40.4%) and Chungbuk (-38.7%) also saw sharp declines due to reduced orders for housing, machinery installation, factories, and warehouses. However, Gwangju (122.1%) and Ulsan (117.3%) experienced increases due to higher orders for housing and machinery installation.

Regarding service industry production, there was a nationwide increase of 2.9%, with Incheon (6.9%), Seoul (5.8%), and Daejeon (3.8%) showing growth, while Jeju (-1.2%) experienced a decline.

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