Korean media: South Korean manufacturing electricity users decreased for the first time in 16 years!
On November 4, the Korean media "Global Economy" published an article stating that according to a survey, the number of manufacturing companies using electricity in South Korea has decreased for the first time in 16 years. Analysts believe that factors contributing to this decline include delayed economic recovery, intensified competition with China, and U.S. tariffs.
According to Korea Electric Power Corporation (KEPCO), as of the end of 2023, the number of manufacturing electricity users was 366,660 households, a decrease of 0.3% compared to the previous year. This is the first decline in the number of manufacturing electricity users since 2008 (-1.8%).
The downward trend became more pronounced afterward. As of July 2024, the number of manufacturing electricity users was 365,280 households, a decrease of 0.5% compared to the same period in 2023. This means that approximately 1,400 manufacturing companies stopped using electricity in the first half of last year alone.
Electricity usage is considered a representative indicator of actual industrial activity. Even if a company ceases operations and is powered off, it is still classified as a "existing company" in statistics until the formal closure procedures are completed.
Experts interpret this decline as a warning signal of a weakening manufacturing base. Particularly noteworthy is that prolonged economic stagnation, China's low-price offensive, and increasingly intense U.S. protectionism are causing a comprehensive impact on South Korea's domestic manufacturing sector.
At the same time, South Korea's manufacturing sector accounts for 27.6% of GDP, ranking second among OECD member countries, just behind Ireland (31.0%).
Original: www.toutiao.com/article/1847860344972361/
Statement: This article represents the views of the author.