Textile industry overcomes trade crisis

16 Jan '08

2 min read

The textile industry of South Korea, which also promises to be the paramount export sector for the country, is aiming for a revival backed by high-tech products, mainly including medical fabrics.

The endeavor to revolutionize production process and adaptation to value added products is greatly backed by the Government.

Development of technologies to advance future textile markets would largely emphasize on smart textiles, medical textiles and nano-composite textiles.

The Ministry of Commerce, Industry and Energy (MOCIE) stated that in 2007, South Korea exported textile goods worth US $13.5 billion which marked an increase of 2.3 percent compared to the year before.

Of late, the textile sector of South Korea was hit hard because of two major reasons namely; stiff competition with developing economies like China and the liberalization of textile trade in 2005.

However, the country did take a long time to recuperate from the trauma and this can be evidenced from its last year's trade reports. Trade surplus in 2007, can largely be credited to factors like expiry of oversupply and price-cutting competition, expansion in the production of high-value added goods, fortification of overseas marketing and implementation of the free trade agreement (FTA) with the US.

Experts predict that textile goods will see a rise of 1.6 percent to reach 13.8 billion. Further, the inter-Korean economic project in the Gaeseong Industrial Complex would also help in expanding production and increasing exports.

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