Nine out of 10 domestic industrial associations think their main products are in a state of oversupply, with some expecting the supply glut to continue over the next decade or so, a survey shows.
According to a survey of 30 industrial associations by the Federation of Korean Industries (FKI), 27, or 90 percent, said their products are suffering from oversupply. None said demand for their products exceeds supply, and three, 10 percent, said supply and demand are in balance.
The 30 industrial associations include all major industries, such as construction, automobile, semiconductor, smartphone, shipbuilding, steel and textiles.
Of the 27 associations whose main products are in supply gluts, 12 (38.6 percent) pointed to the increase in market entry by foreign competitors as the biggest reason, followed by a short-term demand decline due to the global business slump (nine associations), and output increase by domestic competitors (four).
Industrial prospects were not bright, either.
Twenty-six associations, 86.7 percent, said growth of their industries has reached a plateau or been on the wane. Only four said theirs are in a rapid-growth phase or on a steady rise.
The oversupply, which results in a business slump, will likely continue for a long time, according to the survey. None of the 30 associations expected the supply glut to end within a year, with 29.6 percent saying within three years, 22.3 percent within five years and 11.1 percent within a decade. No less than 29.6 percent expected the supply glut to continue for more than a decade.
Nearly half, or 43.3 percent, of respondents said their industries experienced drops in sales and operating profit, with 13.3 percent recording sales increases and profit declines and 26.7 percent registering sales decreases and profit growth in what industry executives described as a "recession-style surplus."
Asked to diagnose the current business environment, 56.7 percent viewed it as a "prolonged slump," with only 20 percent regarding it as a "temporary pickup."
As the foremost steps they would take if the slump continues, 19 associations said they would curtail operations and production, followed by the reduction of investment (10), manpower trimming (seven) and divestiture (seven).
"Korean industries are now in a difficult situation because of supply gluts and the business slump," said Chu Kwang-ho, chief of FKI's industrial headquarters. "If the nation manages to create fresh demand through deregulation and the development of new growth engines, its industrial competitiveness will be able to make another leap."
According to a survey of 30 industrial associations by the Federation of Korean Industries (FKI), 27, or 90 percent, said their products are suffering from oversupply. None said demand for their products exceeds supply, and three, 10 percent, said supply and demand are in balance.
The 30 industrial associations include all major industries, such as construction, automobile, semiconductor, smartphone, shipbuilding, steel and textiles.
Of the 27 associations whose main products are in supply gluts, 12 (38.6 percent) pointed to the increase in market entry by foreign competitors as the biggest reason, followed by a short-term demand decline due to the global business slump (nine associations), and output increase by domestic competitors (four).
Industrial prospects were not bright, either.
Twenty-six associations, 86.7 percent, said growth of their industries has reached a plateau or been on the wane. Only four said theirs are in a rapid-growth phase or on a steady rise.
The oversupply, which results in a business slump, will likely continue for a long time, according to the survey. None of the 30 associations expected the supply glut to end within a year, with 29.6 percent saying within three years, 22.3 percent within five years and 11.1 percent within a decade. No less than 29.6 percent expected the supply glut to continue for more than a decade.
Nearly half, or 43.3 percent, of respondents said their industries experienced drops in sales and operating profit, with 13.3 percent recording sales increases and profit declines and 26.7 percent registering sales decreases and profit growth in what industry executives described as a "recession-style surplus."
Asked to diagnose the current business environment, 56.7 percent viewed it as a "prolonged slump," with only 20 percent regarding it as a "temporary pickup."
As the foremost steps they would take if the slump continues, 19 associations said they would curtail operations and production, followed by the reduction of investment (10), manpower trimming (seven) and divestiture (seven).
"Korean industries are now in a difficult situation because of supply gluts and the business slump," said Chu Kwang-ho, chief of FKI's industrial headquarters. "If the nation manages to create fresh demand through deregulation and the development of new growth engines, its industrial competitiveness will be able to make another leap."
According to a survey of 30 industrial associations by the Federation of Korean Industries (FKI), 27, or 90 percent, said their products are suffering from oversupply. None said demand for their products exceeds supply, and three, 10 percent, said supply and demand are in balance.
The 30 industrial associations include all major industries, such as construction, automobile, semiconductor, smartphone, shipbuilding, steel and textiles.
Of the 27 associations whose main products are in supply gluts, 12 (38.6 percent) pointed to the increase in market entry by foreign competitors as the biggest reason, followed by a short-term demand decline due to the global business slump (nine associations), and output increase by domestic competitors (four).
Industrial prospects were not bright, either.
Twenty-six associations, 86.7 percent, said growth of their industries has reached a plateau or been on the wane. Only four said theirs are in a rapid-growth phase or on a steady rise.
The oversupply, which results in a business slump, will likely continue for a long time, according to the survey. None of the 30 associations expected the supply glut to end within a year, with 29.6 percent saying within three years, 22.3 percent within five years and 11.1 percent within a decade. No less than 29.6 percent expected the supply glut to continue for more than a decade.
Nearly half, or 43.3 percent, of respondents said their industries experienced drops in sales and operating profit, with 13.3 percent recording sales increases and profit declines and 26.7 percent registering sales decreases and profit growth in what industry executives described as a "recession-style surplus."
Asked to diagnose the current business environment, 56.7 percent viewed it as a "prolonged slump," with only 20 percent regarding it as a "temporary pickup."
As the foremost steps they would take if the slump continues, 19 associations said they would curtail operations and production, followed by the reduction of investment (10), manpower trimming (seven) and divestiture (seven).
"Korean industries are now in a difficult situation because of supply gluts and the business slump," said Chu Kwang-ho, chief of FKI's industrial headquarters. "If the nation manages to create fresh demand through deregulation and the development of new growth engines, its industrial competitiveness will be able to make another leap."