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Industry
Sales Trends of Major Retailers for March 2014
The overall sales of major retailers grew in March 2014. The sales of supermarkets declined by 3.7% year-on-year, but grew by 23.5% month-on-month. - Compared to March 2013: Sales of the apparel and sports sectors declined due to the hot days following the last cold snap. - Sales showed a year-on-year decline of 3.3% in the 1st quarter, marking the eighth consecutive quarter of decline since the sales regulations were adopted in the 2nd quarter of 2012. - Compared to March 2013: Sales grew sharply, fueled by the base effect created by the low sales of the previous month. Sales of department stores declined by 1.1% year-on-year and grew by 16.6% month-on-month. - Compared to April 2013: Sales of the fashion sector dropped due to the lower temperature and less holidays compared to the previous year. Sales showed year-on-year growth of 1.1% in the 1st quarter. Sales in the fashion sector declined, while sales of foreign brands, home supplies, kids & sports and foods sectors grew by 10.5%, 5%, 1.6% and 3.2%, respectively. - Compared to February 2014: Sales of all items grew, due to the low sales of the previous month and the increase in the number of operating days, including holidays (plus three days). Sales of convenience stores showed year-on-year growth of 6.5% and month-on-month growth of 18.8%. - Compared to April 2013: Sales of processed foods, including dairy products and ice cream products of PBs grew year-on-year. _ Compared to February 2014: Sales of beverages, processed foods and tobacco products grew sharply thanks to the increase in operating days. In keeping with this trend, sales of SSMs also showed a year-on-year decline of 2.1% and month-on-month growth of 21.0%. - Compared to March 2013: With the exception of meat products, which showed a slight sales growth, all sectors recorded a decline in sales, as a result of the drop in vegetable prices and the continued sales decline of fisheries goods. - Compared to February 2014: The sales of all items grew, which could partly be attributed to more operating days, including holidays. ※ This analysis is based on the ordinary sales of major retailers (three department stores, three supermarkets, four convenience stores and 4 SSMs) and aims to identify the consumption trends. This analysis may have discrepancies in the growth rates or the trends with data of Statistics Korea obtained through the complete enumeration of large retail businesses due to differences in scope and standards. ※ Major supermarkets (EMart, Lotte and Home plus), department stores (Hyundai, Lotte and Shinsegae), convenience stores (CU, GS25, 7-Eleven and BuyTheWay), and SSM (Lotte, GS Super, Home plus express and Everyday Retail) date2014-04-25
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Industry
Automobile export sales for March is the second largest in history
- Overall Manufacturing •Domestic consumption• Exports in H1 stay strong - The Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jik) announced that they calculated the figures in the Automobile industry for March, and manufacturing (425,510 vehicles) increased by 16.4%, domestic consumption (138,230) 5.4%, and exports (286,754) 9.9%, compared to the same month of the previous year. The number of vehicles manufactured was recorded at 425,510, up by 16.4% compared to the sam date2014-04-09
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Industry
Sales Trend of Major Distributors for February 2014
Non-Food Sectors ○ Electronics & Culture - Year-on-Year : -6.9 - Month-on-Month : -9.4 ○ Apparel - Year-on-Year : -21.9 - Month-on-Month : -22.5 ○ Living - Year-on-Year : -18.6 - Month-on-Month : -23.4 ○ Sports - Year-on-Year : -3.8 - Month-on-Month : -9.8 ○ General Merchandise - Year-on-Year : -18.3 - Month-on-Month : -17.5 ○ Sub Total - Year-on-Year : -15.3 - Month-on-Month : -18.3 Foods ○ Sub Total - Year-on-Year : -29.3 - Month-on-Month : -37.8 ○ Total - Year-on-Year : -23.1 - Month-on-Month : -30.0 Non-Food Sectors ○ General Merchandise - Year-on-Year : -2.5 - Month-on-Month : -6.7 ○ Ladies’ Formal Wear - Year-on-Year : 2.7 - Month-on-Month : -17.2 ○ Women’s Casual Wear - Year-on-Year : 2.5 - Month-on-Month : -10.6 ○ Men’s Wear - Year-on-Year : -4.6 - Month-on-Month : -31.5 ○ Children & Sports - Year-on-Year : 3.3 - Month-on-Month : -8.7 ○ Living - Year-on-Year : 12.7 - Month-on-Month : -4.7 ○ Global Brands - Year-on-Year : 18.1 - Month-on-Month : 2.6 ○ Sub Total - Year-on-Year : 3.9 - Month-on-Month : -10.1 ○ Foods - Year-on-Year : -29.2 - Month-on-Month : -43.9 ○ Total - Year-on-Year : -2.4 - Month-on-Month : -16.8 Revenues of convenience stores grew by 4.1% year-on-year due to increased sales of processed food such as beverages, fueled by the warmer climate than the previous year. However, revenues declined by 7.8% month-on-month due to a revenue decrease in all products, including tobacco, as the holiday season was over last month. Non-Food Sectors ○ Living - Year-on-Year : 2.0 - Month-on-Month : -8.9 - Percentage of sales(‘14.2) : 3.5 ○ General Merchandise* - Year-on-Year : -15.7 - Month-on-Month : -8.9 - Percentage of sales(‘14.2) : 4.7 ○ Tobacco, etc. - Year-on-Year : 3.0 - Month-on-Month : -7.6 - Percentage of sales(‘14.2) : 37.7 ○ Sub Total - Year-on-Year : 0.7 - Month-on-Month : -7.8 - Percentage of sales(‘14.2) : 45.9 Foods ○ Beverages and Processed Goods - Year-on-Year : 7.5 - Month-on-Month : -6.9 - Percentage of sales(‘14.2) : 47.4 ○ Instant foods (including some perishable goods) - Year-on-Year : 5.7 - Month-on-Month : -13.2 - Percentage of sales(‘14.2) : 6.7 ○ Sub Total - Year-on-Year : 7.3 - Month-on-Month : -7.7 - Percentage of sales(‘14.2) : 54.1 ○ Total - Year-on-Year : 4.1 - Month-on-Month : -7.7 - Per date2014-03-27
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Industry
Sales Trend of Major Distributors for January 2014
Non-Food Sectors ○ Electronics & Culture - Year-on-Year : 19.6 - Month-on-Month : -12.5 ○ Apparel - Year-on-Year : 6.0 - Month-on-Month : -32.6 ○ Living - Year-on-Year : 11.8 - Month-on-Month : 13.1 ○ Sports - Year-on-Year : 1.8 - Month-on-Month : -25.3 ○ General Merchandise - Year-on-Year : 10.3 - Month-on-Month : 19.3 ○ Sub Total - Year-on-Year : 11.8 - Month-on-Month : -4.7 ○ Foods - Year-on-Year : 25.3 - Month-on-Month : 41.8 ○ Total - Year-on-Year : 18.6 - Month-on-Month : 16.2 Non-Food Sectors ○ General Merchandise - Year-on-Year : 2.8 - Month-on-Month : -19.1 ○ Ladies’ Formal Wear - Year-on-Year : -9.9 - Month-on-Month : -13.4 ○ Women’s Casual Wear - Year-on-Year : -0.6 - Month-on-Month : -28.0 ○ Men’s Wear - Year-on-Year : -3.3 - Month-on-Month : -9.0 ○ Children & Sports - Year-on-Year : 3.7 - Month-on-Month : -29.0 ○ Living - Year-on-Year : 4.6 - Month-on-Month : 0.6 ○ Global Brands - Year-on-Year : 11.3 - Month-on-Month : -23.3 ○ Sub Total - Year-on-Year : 1.1 - Month-on-Month : -19.6 ○ Foods - Year-on-Year : 37.7 - Month-on-Month : 45.3 ○ Total - Year-on-Year : 6.8 - Month-on-Month : -13.4 Meanwhile, the revenues of convenience stores grew by 9.7% year-on-year, fueled by robust sales of liquor and gift sets during the holiday seasons. However, the revenues declined by 2.3% month-on-month due to a revenue decrease in tobacco, as the number of smokers tends to decrease at the start of the year. Non-Food Sectors ○ Living - Year-on-Year : 17.9 - Month-on-Month : 0.4 - Percentage in sales(‘14.1) : 3.6 ○ General Merchandise* - Year-on-Year : 16.1 - Month-on-Month : 15.9 - Percentage in sales(‘14.1) : 4.7 ○ Tobacco, etc. - Year-on-Year : 3.5 - Month-on-Month : -4.1 - Percentage in sales(‘14.1) : 37.6 ○ Sub Total - Year-on-Year : 5.7 - Month-on-Month : -2.0 - Percentage in sales(‘14.1) : 45.9 Foods ○ Beverages and Processed Goods - Year-on-Year : 13.8 - Month-on-Month : -2.2 - Percentage in sales(‘14.1) : 47.0 ○ Instant foods (including some perishable goods) - Year-on-Year : 10.3 - Month-on-Month : -4.5 - Percentage in sales(‘14.1) : 7.1 ○ Sub Total - Year-on-Year : 13.3 - Month-on-Month : -2.5 - Percentage in sales(‘14.1) : 54.1 ○ Total - Year-on-Year : 9.7 - Month-on-Month : -2.3 - Percentage in sales(‘14.1) : 100 * Books, magazines, lottery, and gift certificates The revenue of SSM (Super Supermarkets) also increased by 3.7% year-on-year and by 17.7% month-on-month thanks to robust sales in agricultural and fisheries and general merchandise, prompted by the growing demand during the holiday season. [Revenue Growt date2014-02-27
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Industry
Bigger Market for Companies, and Better Jobs for People
Objective : Bigger Market for Companies, and Better Jobs for People Strategies : ㅁ Establish virtuous cycle of export/investment and domestic demand ① Expand exports of SMEs/Enterprise with high potential ② Reform regulations & facilitate investment ③ Nurture new industry to create jobs ㅁ Nurture creativity/innovation-oriented new growth engines ④ First Mover innovation ⑤ Establish a creative industrial ecosystem ⑥ Anchor creative economy of the region ㅁ Promote overseas market entry by companies and individuals ⑦ Continuously promote open trade policy ⑧ Maximize achievement of summit diplomacy ⑨ Help trade cooperation in the resources/energy sector to bear fruit ㅁ Normalization of the resources/energy sector (⑩) Export risk of SMEs/High potential enterprises is increasing, as the US tapering has increased the volatility of the exchange rate and concerns on the crisis of newly emerging countries. Domestic demand-oriented companies and export startups are suffering from a lack of information on overseas markets and export financing. Under these circumstances, the Ministry will step up its efforts to increase the resilience of SMEs/High potential enterprises. The Ministry is expected to expand the support available for trade financing by providing a special contribution in the private sector and integrating the overseas market information of 34 export supporting organizations in order to make it available online so that SMEs can have easy access to information on exporting. In addition, as part of its efforts to increase the number of SMEs exporters to 100,000 by 2017 (87,000 in 2013), the Ministry will extend customized integrated programs such as precise analysis of export capabilities, 1:1 consulting, provision of channels, and support for trade finance, and will operate a dedicated trading company starting this July. The competitiveness of the global market is continuously growing due to the promotion of a renaissance in the manufacturing industry in advanced nations; the accelerating recovery in the US manufacturing sector spurred by the Shale gas boom; Japan’s aggressive market expansion thanks to the weak Yen; and Germany’s promotion of its Industry 4.0 campaign. However, Korea is lagging behind in terms of creating n date2014-02-25
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Industry
Analysis of Trend in R&D investments by the Top 1,000 Korean Companies in terms of R&D Investment Amount in 2012
The Ministry of Trade, Industry, and Energy (Minister Yoon Sang-jick) and the Korea Institute for the Advancement of Technology (President Jeong Jae-hoon) conducted a study on the R&D investment trend of the 1,000 Korean companies that made the highest R&D investments. The total R&D investment by these top 1,000 companies was recorded as KRW 35.6 trillion, up 12.7% from 2011. * The top 1,000 companies in the area of R&D investment were selected based upon the 2012 audit report date2014-02-21
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Industry
Automobile Industry Records Record-High Trade Surplus of USD 63.5 Billion for 2013
More notably, domestic sales turned around within five months since last August, prompted by an improvement of consumer sentiment and the effects of new product launches, despite a reduction in the number of operating days, which signals the recovery of the domestic market for the year. * Domestic sales trend (%): (August 2013) 29.4 → (September) -11.0 → (October) -0.1 → (November) -6.0 → (December) -6.7 → (January 2014) 4.0 In addition, the favorable trend is expected to continue as key models* will be launched and demands for RVs will grow. * New vehicles to be launched in the 1st half: Hyundai Sonata (LF), Kia Carnival (YP), Renault- Samsung QM3 Despite the growth of imported car sales in the domestic market, the industry recorded the largest exports in its history as the shares of large-sized vehicles (model-based) and RVs with high added value in exports increased*, the quality competitiveness of domestic cars improved**, the presence of domestic cars improved*** and the supply of parts to overseas plants and global businesses was increased. * Shares of large-sized and RVs in exports (%): (1996) 4.5 → (2000) 20.2 → (2010) 32.9 → (2013) 41.3 ** Korean cars won the high recognition from major evaluation organizations including IIHS and major market survey organizations, including JD Power and Consumer Report, while winning multiple awards including the vehicle of the year awards of many regions (nations). *** Hyundai Motor Company took 43rd place (7th in the automobile sector) and Kia Motors took 83th place (11th in the automobile sector) among the global top 100 brands (Interbrand, September 2013). The automobile industry significantly contributed to Korea’s trade surplus by recording a trade surplus for 30 consecutive years since 1984, and the amount of the surplus has continuously increased. *A trade deficit was recorded from 1977 to 1983, and the trade surplus has been expanded by an average of 34.3% per year since 1984. ○ 1977 - All Industries : -7.6 - Automobile Industry : -1.3 ○ 1984 - All Industries : -13.9 - Automobile Industry : 0.1 ○ 1990 - All Industries : -48.3 - Automobile Industry : 12.6 ○ 1995 - All Industries : -100.6 - Automobile Industry : 69.5 ○ 2000 - All Industries : 117.9 - Automobile Industry : 135.1 ○ 2005 - All Industries : 231.8 - Automobile Industry : 332.3 ○ 2010 - All Industries : 411.7 - Automobile Industry : 458.9 ○ 2013 - date2014-02-13
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Industry
Local Automakers and Importers Subject to Penalty if Fuel Efficiency Standards Not Met
As of February 6th, the “Energy Use Rationalization Act” is being enforced, following its amendment. In a bid to toughen the government’s energy demand management, the act stipulates that local automakers and importers of foreign vehicles that fail to meet the target fuel efficiency standards for automobiles and violate the Energy Consumption Efficiency Grade Indication System will be subject to the imposition of a penalty surcharge. In addition, to foster the utilization of date2014-02-06
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Industry
Sales Trend of Major Distributors for December 2013
Non-Food Sectors ○ Electronics & Culture - Year-on-Year : -3.3 - Month-on-Month : 10.7 ○ Apparel - Year-on-Year : -10.3 - Month-on-Month : -4.7 ○ Living - Year-on-Year : -5.2 - Month-on-Month : 2.8 ○ Sports - Year-on-Year : -3.7 - Month-on-Month : 2.5 ○ General Merchandise - Year-on-Year : -11.3 - Month-on-Month : 14.4 ○ Sub Total - Year-on-Year : -6.2 - Month-on-Month : 4.2 ○ Foods - Year-on-Year : -4.8 - Month-on-Month : 10.0 ○ Total - Year-on-Year : -5.7 - Month-on-Month : 8.3 Non-Food Sectors ○ General Merchandise - Year-on-Year : -3.2 - Month-on-Month : 11.5 ○ Ladies’ Formal Wear - Year-on-Year : -5.8 - Month-on-Month : -8.5 ○ Women’s Casual Wear - Year-on-Year : -2.9 - Month-on-Month : -8.7 ○ Men’s Wear - Year-on-Year : -5.7 - Month-on-Month : -8.7 ○ Children & Sports - Year-on-Year : 3.9 - Month-on-Month : -14.1 ○ Living - Year-on-Year : 2.2 - Month-on-Month : -13.8 ○ Global Brands - Year-on-Year : 8.7 - Month-on-Month : 9.5 ○ Sub Total - Year-on-Year : -0.6 - Month-on-Month : -4.1 ○ Foods - Year-on-Year : 1.1 - Month-on-Month : 12.0 ○ Total - Year-on-Year : -0.3 - Month-on-Month : -0.1 Non-Food Sectors ○ Living - Year-on-Year : 4.8 - Month-on-Month : -8.4 ○ General Merchandise - Year-on-Year : 2.1 - Month-on-Month : 10.0 ○ Tobacco, etc. - Year-on-Year : 7.3 - Month-on-Month : 0.9 ○ Sub Total - Year-on-Year : 6.6 - Month-on-Month : 0.9 Foods ○ Beverages and Processed Goods - Year-on-Year : 12.2 - Month-on-Month : -4.3 ○ Instant foods (including some perishable goods) - Year-on-Year : 12.0 - Month-on-Month : -3.2 ○ Sub Total - Year-on-Year : 12.2 - Month-on-Month : -4.1 ○ Total - Year-on-Year : 9.6 - Month-on-Month : -1.9 The revenues of all items of the so-called Super Supermarkets, or SSM, operated by large retailers, including foods, declined date2014-01-23
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Industry
2013 Car Industry Trends
○ 2011 - Production : 4,657,094 - Export : 3,151,708 - Amount (USD 0.1 billion) : 453.1 - Domestic Sales : 1,579,674 - Cars Made in Korea : 1,474,637 - Imported Cars : 105,037 ○ 2011 Rate of Change - Production : 9.0 - Export : 13.7 - Amount (USD 0.1 billion) : 28.0 - Domestic Sales : 1.5 - Cars Made in Korea : 0.6 - Imported Cars : 16.0 ○ 2012 - Production : 4,561,766 - Export : 3,170,634 - Amount (USD 0.1 billion) : 472.0 - Domestic Sales : 1,541,715 - Cars Made in Korea : 1,410,857 - Imported Cars : 130,858 ○ 2012 Rate of Change - Production : -2.0 - Export : 0.6 - Amount (USD 0.1 billion) : 4.2 - Domestic Sales : -2.4 - Cars Made in Korea : -4.3 - Imported Cars : 24.6 ○ 2013 (Preliminary) - Production : 4,521,638 - Export : 3,086,394 - Amount (USD 0.1 billion) : 486.5 - Domestic Sales : 1,537,590 - Cars Made in Korea : 1,381,091 - Imported Cars : 156,497 ○ 2013 (Preliminary) Rate of Change - Production : -0.9 - Export : -2.7 - Amount (USD 0.1 billion) : 3.1 - Domestic Sales : -0.3 - Cars Made in Korea : -2.1 - Imported Cars : 19.6 * Source: Korea Automobiles Manufacturers Association and Korea Automobile Importers and Distributers Association The export volume for 2013 was 3,086,394 units, a year-on-year decrease of 2.7%, and recorded a decline for the first time in four years since 2009 due to the high won and low yen trend, expanded global uncertainties and supply problems of major manufacturers. Nevertheless, the export amount of finished cars (based on MTI 741) reached a record-high level of USD 48.7 billion with a year-on-year increase of 3.1%, thanks to growth in the market share of large passenger vehicles and RVs. By region, exports of Korean cars were robust in the US market, which has shown a stable economic recovery, and grew in the EU and in Asia, reflecting the economic growth. However, exports declined in Latin America and Eastern Europe due to expanding local production. In China, which accounts for half of all exports to Asia, exports grew by 13.2%, prompted by growing demand caused by the urbanization of inland regions. ○ 2010 - Total : 2,772 - North America : 678 - US : 511 - EU : 298 - Eastern Europe : 241 - Middle East : 587 - Latin America : 447 - Africa : 172 - Pacific : 180 - Asia : 169 - China : 88 ○ 2010 Change - Total : 29.0 - North America : 11.4 - US : 13.7 - EU : -1.3 - Eastern Europe : 144.9 - Middle East : 39.8 - Latin America : 57.3 - Africa : -1.2 - Pacific : 22.2 - Asia : 48.2 - China : 74.2 ○ 2011 - Total : 3,152 - North America : 771 - US : 588 - EU : 426 - Eastern Europe : 268 - Middle East : 626 - Latin America : 495 - Africa : 180 - Pacific : 161 - Asia : 225 - China : 129 ○ 2011 Change - Total : 13.7 - North America : 13.7 - US : 15.1 - EU : 42.8 - Eastern Europe : 11.0 - Middle East : 6.7 - Latin America : 10.9 - Africa : 5.0 - Pacific : -11.0 - Asia : 32.6 - China : 45.7 ○ 2012 - Total : 3,171 - North America : 905 - US : 694 - EU : 398 - Eastern Europe : 284 - Middle East : 614 - Latin America : 433 - Africa : 1 date2014-01-15