IT sector to drive economic growth

2014_12_growth_industriesPolarization will continue to become a key feature of not only Korean society but also the landscape of industries this year, the Hana Institute of Finance said in its recent industries outlook report for 2014. “The export-driven Korean economy will be on a gradual recovery track in line with a pick-up of the global economy, but the polarization by industry and by corporate ranking within industries will intensify,” the report pointed out.

By industry, the information technology sector, led by Samsung Group and other tech giants, will continue to power the nation’s economic growth, while non-IT sectors except the car industry are forecast to remain stagnant. The projection means that economic dependence on the nation’s top two corporate names ― Samsung Electronics and Hyundai Motor ― will further deepen this year.

Data from the Korea Exchange found Samsung Electronics and Hyundai Motor accounted for more than half of net profits generated by the top 100 companies by sales Korea’s as of 2012.  The share of net profits generated by the two heavyweights continued to increase from 19 percent in 2007 to 35 percent in 2009, 36 percent in 2011 and a record-high 51 percent in 2012.

For full article, see Korea Herald.

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