ID :
79250
Thu, 09/10/2009 - 11:02
Auther :
Shortlink :
https://www.oananews.org//node/79250
The shortlink copeid
Aggressive investments helped S. Korea dominate display market: think tank
By Lee Joon-seung
SEOUL, Sept. 9 (Yonhap) -- Aggressive investments carried out in the face of adverse market conditions has helped South Korea dominate the global display industry, a state-run economic think tank said Wednesday.
Korea Institute for Industrial Economics and Trade (KIET) said local companies
got ahead by investing heavily when the world was being rocked by the collapse of
the information technology bubble in 2001-2003 and once again in 2006-2008 when
there was "excessive" competition in the market.
South Korea is currently the largest producer of display panels in the world with
market share reaching 52.5 percent in the second quarter of this year, up sharply
from 42.9 percent a year earlier. Exports of displays jumped by more than 31
percent on-year in August despite worldwide economic woes.
"By pouring more money into research and production capabilities when rivals cut
back, South Korean companies like Samsung and LG were able to meet subsequent
demand for larger and more upper-end products," the think tank under the Ministry
of Knowledge Economy claimed.
It also said that the "in-house" business structure of South Korean companies
that allowed them to directly use their own products gave local companies an edge
over foreign competitors in Taiwan and Japan.
Both Samsung and LG make large liquid crystal display TVs (LCD TVs), notebook
computers and various multimedia appliances that use display panels of all sizes.
Local companies also made active marketing efforts to sell their products
overseas and steadily poured money into research and development (R&D), allowing
them to turn out high-tech flexible screens and ultra-slim LCDs, the institute
said.
KIET added that tough competition between Samsung and LG exerted a positive
effect and fueled R&D and production volume.
The think tank, meanwhile, said that in order for South Korea to hold onto its
current edge, local companies should make more investments and pay more attention
to manufacturing equipments and components, mainly supplied by Japan.
yonngong@yna.co.kr
(END)
SEOUL, Sept. 9 (Yonhap) -- Aggressive investments carried out in the face of adverse market conditions has helped South Korea dominate the global display industry, a state-run economic think tank said Wednesday.
Korea Institute for Industrial Economics and Trade (KIET) said local companies
got ahead by investing heavily when the world was being rocked by the collapse of
the information technology bubble in 2001-2003 and once again in 2006-2008 when
there was "excessive" competition in the market.
South Korea is currently the largest producer of display panels in the world with
market share reaching 52.5 percent in the second quarter of this year, up sharply
from 42.9 percent a year earlier. Exports of displays jumped by more than 31
percent on-year in August despite worldwide economic woes.
"By pouring more money into research and production capabilities when rivals cut
back, South Korean companies like Samsung and LG were able to meet subsequent
demand for larger and more upper-end products," the think tank under the Ministry
of Knowledge Economy claimed.
It also said that the "in-house" business structure of South Korean companies
that allowed them to directly use their own products gave local companies an edge
over foreign competitors in Taiwan and Japan.
Both Samsung and LG make large liquid crystal display TVs (LCD TVs), notebook
computers and various multimedia appliances that use display panels of all sizes.
Local companies also made active marketing efforts to sell their products
overseas and steadily poured money into research and development (R&D), allowing
them to turn out high-tech flexible screens and ultra-slim LCDs, the institute
said.
KIET added that tough competition between Samsung and LG exerted a positive
effect and fueled R&D and production volume.
The think tank, meanwhile, said that in order for South Korea to hold onto its
current edge, local companies should make more investments and pay more attention
to manufacturing equipments and components, mainly supplied by Japan.
yonngong@yna.co.kr
(END)
