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Korea’s OLED Industry sparks KRW27tr worth of production annually through exports

Korea’s OLED industry creates 27 trillion won worth of production and 100,000 jobs a year through OLED exports, a report from the National Assembly Budget Policy Office says.

The report, released on Sept. 13, urged the government to come up with measures to help Korean OLED producers fend off challenges to their leadership from Chinese companies.

The report estimates the production inducement effects and value-added inducement effects of OLED device exports in 2020 at 26.8318 trillion won and 9.529 trillion won, respectively. The two figures accounted for 70.5 percent and 68.8 percent of total display export effects, respectively.

In 2020, the employment inducement effects of display exports such as OLEDs reached 103,687 jobs, accounting for 76.2 percent of jobs created by all display exports.

The global trade specialization index of South Korea’s OLED industry was estimated to be 0.77. The closer the figure is to 1, the more specialized a country is in exports, and the closer the figure is to -1, the more specialized it is in imports. The China Trade Specialization Index was also 0.73, meaning that Korea is specialized in exports.

The problem is that Korea’s competitive advantage in the global OLED market is gradually waning against China. In particular, Korean display makers’ competitiveness, which was overwhelming compared to China in terms of quality, is on a gradual decline. The unit price ratio of exports to and imports from China fell from 5.8 in 2017 to 2.3 in 2020. If a country’s import and export unit price ratio exceeds 1.25 against another country, it means the country’s product has superior quality. Korea’s quality competitiveness is still high compared to China, but this figure is gradually shrinking.

In fact, China is closely trailing Korea in the OLED market based on government support and price competitiveness. Although global OLED sales growth fell from 42.2 percent in 2017 to 7.4 percent in 2019, China’s OLED market share inflated from 1 percent to 9.8 percent during the same period. Business Korea

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