Gyeonggi-do Industry Shifting to Multi-Polar System with Automotive, Bio, and Software, Says Gyeonggi-do Economic Science Promotion Agency

The industrial landscape of Gyeonggi-do is rapidly shifting from a single structure centered on semiconductors to a multi-polar system focused on bio, automotive, and software industries.

The Gyeonggi-do Economic Science Promotion Agency announced on the 19th, through its report titled "Where Is Gyeonggi-do Industry Heading? Changes and Reorganization Directions of Listed Companies in the Province Since 2018," that over the past seven years, the province has experienced not only quantitative growth but also significant changes in its industrial structure.

This report comprehensively examined the restructuring of Gyeonggi-do's industry by analyzing KOSPI and KOSDAQ-listed companies in the province at two points in time, 2018 and 2025.

According to the report, the number of listed companies increased by 33.9%, from 576 to 771. Total sales rose by 34.3%, from 375.6 trillion won to 504.3 trillion won, while assets surged by 78.7%, from 498.5 trillion won to 890.9 trillion won.

However, operating profit decreased by 35.8% during the same period, from 73.2 trillion won to 47 trillion won. This is attributed to a 47.0% drop in operating profit in the semiconductor industry, which accounted for more than half of the total sales of listed companies, compared to the boom year of 2018.

The report highlighted the growth of the so-called "next-generation troika" industries: bio, automotive, and software.

Sales in the bio and healthcare industry increased by 128.7%, and operating profit by 158.6%. Operating profit in the automotive and parts industry soared by 231.5%. The software industry also saw sales rise by 128.8% and operating profit by 47.8%.

The proportion of manufacturing among all listed companies slightly decreased from 73.6% to 72.2%, while information and communications rose from 6.9% to 9.1%, and professional, scientific, and technical services increased from 3.3% to 5.6%.

Gyeonggi-do Economic Science Promotion Agency published the report titled "Where Is Gyeonggi-do Industry Headed? Changes and Reorganization Directions of Listed Companies in the Province Since 2018" on the 19th.

원본보기 아이콘

By company size, mid-sized companies saw sales increase by 37.5%, operating profit by 14.0%, and net profit by 41.2%.

In contrast, small and medium-sized enterprises experienced a 54.1% increase in the number of companies and a 55.8% rise in employment, but faced management difficulties such as a shift to operating losses.

The report recommended that, for the development of Gyeonggi-do's industry, it is necessary to: ▲ focus on fostering the next-generation troika industries ▲ restore growth ladders based on company size ▲ advance core industries and provide support linked to industries in crisis.

Kim Hyungon, President of the Gyeonggi-do Economic Science Promotion Agency, stated, "This analysis shows that Gyeonggi-do's industry is at a turning point where it must equip itself with new growth engines such as bio, automotive, and software, in addition to semiconductors," adding, "We will continue to strengthen field-oriented, customized policy support to ensure the qualitative growth of small and medium-sized enterprises and the successful transition to new industries."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.