Commitment for Support
KAOMI pledges support for machinery industry to spur growth in 2006

The Korea Association of Machinery Industry (Chairman Yoon Young-sok) held a new year's reception at the DLI Building in Yeouido, Seoul, in which over 500 people including Minister of Commerce, Industry and Energy Lee Hee-beom attended. Also attending the event were Chung Hae-joo, chairman of the Korea Aerospace Industries Association and Kim Chil-do, chairman of the Korea Industrial Complex Corp.
KAOMI Chairman Yoon, in his speech at the reception, said all of them were assembled to congratulate the machinery industry's feat of achieving a surplus in international machinery trade last year for the first time, eliminating a chronic deficit and to resolve the machinery people's unswerving intention to make Korea a strong machinery industrial country in the world by continuing to sustain the trade surplus in the years ahead.
Last year, the chairman said machinery exports registered a 20.1 percent growth, despite many difficulties including the appreciation of Korean won currency and high oil prices. Exports of electric and transportation machinery amounted to $82 billion with a trade surplus of $27.2 billion to rank Korea, the 11th largest machinery exporting nation, which I again thank those who worked hard to realize the enviable record.
In particular, he said, the international trade of general machinery, which is regarded as an industrial engine, recorded $14 billion in trade surplus last year, which is a great feat, considering that a decade ago; the industry suffered a deficit of $14 billion. In advanced countries like Germany and Japan, machinery exports share from 20 to 40 percent of total exports acting as a locomotive for the manufacturing industries in those countries, taking up 50 percent of total surpluses of all industries. They have been a key factor to push up those countries per capita GDP to $20,000 and $30,000.
We were able to achieve such a large surplus in 2 years following the removal of chronic trade deficit, showing that we can play a big role in raising the per capita GDP to $20,000 and even to $30,000 as early as possible, the chairman stressed.
The government projected 5 percent in economic growth for this year, higher than last year. The machinery industry projects its general machinery exports would total $6.5 billion, up 21.4 percent, with production up 11.5 percent.
But the industry still has many weak points despite its growth in volume, including weaknesses in the technologies for production of core parts and material and high-tech products. The industry will have to grapple with competition from developing countries most notably China, the aging workforce and the shortage in manpower, the KOAMI chairman stressed.
He said we have to join in the government program to bridge the gap between large and small machinery firms and support those small makers to open up their sales routes and search for ways to grow together. Manpower shortages in the industry have been growing, calling for the industry's strong participation in the government's program to train increased manpower and do its best to overcome manpower shortages. The industry should try hard to develop technologies and exert marketing efforts to keep exports going as they did last year for further growth of the industry. The surprising growth of the industry is the result of the hard work by all those in the industry to overcome various problems and difficulties. He said he is calling on every firm to develop high-tech and produce first-rate products to lead the world market through its globalization. KAOMI, too, pledges to undertake every thing within its reach to help the industry to open its renaissance age.
The machinery industry determines the competitive power of the manufacturing industry as a core industry, mother, engine and root of all industries. The surplus base of the general machinery industry would heighten the competitive power of the manufacturing industry and further raise Korea's image as a strong machinery country in the world, the chairman stressed.
He said he hopes the gathering would be a significant place where machinery industry people pledged their determination to work to lead the country's march toward becoming an advanced country. nw

Heads of member firms of the KAOMI and guests including MOCIE Minister Lee Hee-beom clap hands at the new year gathering of the KAOMI.