Last year, it was found that only three regions in Gyeonggi-do, Sejong, and Gwangju showed an increase in production in the mining industry including manufacturing. Major indicators such as employment and export have deteriorated in most regions of the country due to the influence of the novel coronavirus infection (Corona 19).
According to the ‘2020 Annual Regional Economic Trends’ released by the National Statistical Office on the 22nd, the mining and industrial production in 17 cities and provinces nationwide last year increased 0.4% from a year ago. Production growth in Gyeonggi (9%), Sejong (7.6%) and Gwangju (0.7%) raised the national average. All other areas were negative (-).
Annual regional economic trends in 2020. Statistical Office
In particular, production in the information and communication technology (ICT) field was remarkable. The production of semiconductor production facilities such as Samsung Electronics and SK Hynix in Gyeonggi-do led to the increase in mining and industrial production in Gyeonggi-do. In Gwangju, the production of electrical equipment including home appliances increased.
Kim Dae-yu, head of the Statistical Office’s Income Statistics Division, said, “In Gyeonggi-do, the proportion of semiconductors was the largest among the production growth in Gyeonggi-do.”
In the fourth quarter of last year alone, the production of electrical equipment and electronic parts in Gwangju increased, recording the highest growth rate. In Chungbuk, the production of chemical products and medicines increased.
Seoul, service production increased 1.1%
Due to social distancing, lodging, restaurants, transportation and warehouses contracted, and the nationwide service industry production decreased by 2% compared to the previous year. Last year, the only area in the country where service industry production increased was Seoul (1.1%). The National Statistical Office explained that “in Seoul, production of real estate and financial insurance has increased. Last year’s housing transaction volume hit a record high, and loans and stock investment surged.
In Jeju (-10.4%), Incheon (-9.8%), and Gangwon-do (-4.9%), arts, sports, and leisure took a direct hit and stepped back.
Last year, the nationwide employment rate fell 0.8 percentage points compared to the previous year when the situation of’employment disaster’ intensified. Gyeonggi-do (-1.6 percentage points), Gangwon-do (-1.5 percentage points), and Jeju-do (-1.3 percentage points) recorded relatively large declines. Employment rates in five cities and provinces, including Daejeon (0.9% points), Jeonbuk (0.6% points), and Jeonnam (0.5% points), rose.
The region with the most inflation is Incheon
Inflation rose in all regions last year and the national average inflation rate reached 0.5%. This was largely attributable to the rise in agricultural product prices as demand increased during the longest rainy season. The region where inflation rose the most was Incheon (0.8%), followed by Chungnam and Jeonnam (0.7%). National consumption declined by -0.2% compared to the previous year, especially in Jeju (-26.9%) and Seoul (-9%).
Last year, exports retreated to the national average of -5.4%. Manager Dae-yu Kim analyzed that “exports, which had been declining for the seventh consecutive quarter, rebounded in the fourth quarter of last year, but the boom in the semiconductor sector turned exports into an increasing trend.”
Sejong = Reporter Seongbin Lim [email protected]