Chip, machinery sectors to see export boom in H2: report

SEOUL, July 7 (Yonhap) -- South Korea's chip and machinery industries are expected to see a boom in exports in the second half of the year, underpinned by strong overseas demand, a report said Thursday. The country's steel industry, however, is forecast to face a continued slump due to a fall in overseas orders, especially from China, which has gone into a belt-tightening mode, according to the report by the Korea Chamber of Commerce and Industry (KCCI). The machinery industries are predicted to be on a roll in the next six months, boosted by continued overseas demand from emerging countries, which will offset weak facility investment in South Korea. Exports of semiconductors are forecast to rebound in the July-December period, fueled by seasonal demand and decline in inventories caused by Japan's March 11 earthquake. The steel industry's growth is expected to falter in the second half due to China's austerity policies and excessive inventories. Exports of automobiles are also projected to slow down due to intensified competition in the global market and energy firms are likely to face weak domestic demand. The country's shipbuilding and construction sectors are likely to see an improvement in their exports, but it remains to be seen whether they will be able to pull off a complete turnaround from the slump, the report said.