S. Korea's industrial electricity sales post positive growth in April

By Lee Joon-seung
SEOUL, May 17 (Yonhap) -- Industrial electricity sales rebounded from negative
territory in April thanks to greater demand by steel, semiconductor and chemical
businesses, a government report said Sunday.
The Ministry of Knowledge Economy said sales rose 2.4 percent on-year in the
cited month, marking the first time in six months that power supplied to the
industrial sector grew compared to the year before.
Sales grew 4.1 percent on-year in October 2008 before falling to minus 1.3
percent in the following month and contracting 2.0 percent in March 2009.
The findings are significant because electricity sales generally reflect overall
market health.
"There is a general correlation between power use and economic activity, with
demand falling during hard times," a government official said, although making
clear it is too early to speculate that the increase tallied for last month is a
sign the economy is making a comeback.
He said of the eight industries checked, chemicals and steel rose 10.1 percent
and 3.8 percent on-year, with sales to semiconductor companies moving up 3.7
percent.
Power sold to shipyards grew 8.1 percent, which is a slight drop from the 12.8
percent gains tallied for the previous month. Shipbuilders have been the main
engine of growth in the past few months since local yards are engaged in
fulfilling past orders.
The report by the ministry in charge of the country's industrial and energy
policies, meanwhile, said electricity sales for machinery, autos, textiles and
metal assembly all fell vis-a-vis April 2008.
Demand from the metal assembly industry fell 7.8 percent, while numbers for
machinery and autos declined 0.8 percent and 17.0 percent, respectively. Power
sales to textiles companies were down 3.2 percent.
yonngong@yna.co.kr
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