South Korea's home appliance industry is deeply trapped in multiple crises

On October 12, South Korea’s “Asian Economy” reported that as the main export project, the Korean home appliance industry was deeply troubled by “multi-crisis”. The LCD TVs and other products that once dominated the global market lost their profits for the first time in 2017 and encountered Waterloo. In addition to being affected by the US trade protectionism policy, various obstacles such as various restrictions in South Korea, the rigidity of the employment market, and the price offensive in the target countries of competition are the main reasons for the loss of Korean products. According to analysis conducted by Korea Customs Service and Korea Trade Statistics Promotion Agency, total exports of 14 kinds of home appliances such as TVs, washing machines, air conditioners, fans, and refrigerators in Korea amounted to US$2.421 billion in January-August 2017, a year-on-year decrease of 10.4%. After 2016, it has been declining for two consecutive years. Contrary to this, imports of related products have increased significantly for two consecutive years, with increases of 52.2% and 46.4% in 2016 and 2017, respectively.
It is worth mentioning that the trade surplus of household appliances, mainly TVs, rice cookers, blenders, and air purifiers, has significantly decreased, and the reduction has increased from 30.6% in 2016 to 51.7% this year.
In addition, in the fierce global competition, South Korea's LCD TV market share is also not as good as before. Under China’s price offensive, related products’ exports started to decline from 2015, and in 2017, the first trade balance deficit occurred. In 2013, Korea’s television trade surplus reached a surplus of 1.362 billion U.S. dollars. After just four years, the results were no longer bright, and the deficit this year was about 28 million U.S. dollars.

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