Semiconductor Boom Masks Deep Weaknesses in Korean Manufacturing
Creatrip Team
a month ago
South Korea’s economy shows a stark imbalance: semiconductors (반도체) are booming thanks to AI demand, but other key sectors—beauty (K-beauty), petrochemicals, and batteries—are struggling. Samsung and SK Hynix report record profits, while LG Household & Health Care (LG생건) posted a surprise operating loss due to China market weakness and restructuring costs. Petrochemical firms like Lotte Chemical face long-term pain from Chinese oversupply, and battery maker Samsung SDI is hit by weaker EV demand and cuts to subsidies in Europe and North America. Government data show exports down in 9 of 15 major categories, leaving only semiconductors and autos driving growth. Experts warn that overreliance on one sector risks a severe downturn if the semiconductor cycle reverses, urging faster industrial diversification and rebuilding manufacturing fundamentals.
