Vision for textile development in 2010

The Korean Ministry of Commerce, Industry and Energy has announced its vision for the development of the textile industry by setting 2010 as the final year of this plan. It estimates the production size to be 51.3 trillion won (1.5 times compared to 1998); domestic demand, 42.3 trillion won (approximately 2 times compared to 1999); and exports, US$25 billion (1.4 times compared to 1999).

In promoting this plan, Korea will accelerate expanding production of Korean original textiles on the basis of the technological development through strengthening of its competitiveness by integrating and increasing the size of the synthetic fiber industry which is facing pressure to restructure. Korean synthetic fiber producers are in red figures because of excessive equipment, and cannot make necessary investment in equipment appropriately. Although long-sightedness is shown by the voluntary will of the industry in principle, polyester filament producers must integrate the number of firms to four so that they can exhibit scale merits. For this reason, Korea intends to review the overall business structure focusing on firms which have been carrying out restructuring by workouts and other measures. At the same time, Korea also intends to cultivate new markets such as those for industrial materials by developing revolutionary technologies.

Previously, Korea used to rely on importing new technologies from advanced countries. The Korean synthetic fiber industry, however, intends to build up the base for its technological development by 2005 so that it can develop new textile materials based on its original technologies by 2010. The industry intends to increase the ratio of sophisticated products, 80% compared to advanced countries now, to more than 90% in 2005 and to a level surpassing advanced countries in 2010.

The Korean textile industry places importance on the development of design for apparel. The industry will shift apparel exports mainly of OEM to sales of brand goods manufactured with original designs, and make efforts for cultivating new markets and promptly meeting changes in the global markets. The level of fashion design is now about 65% compared to advanced countries. The industry intends to enhance this level to about 80% in 2005, and to 90% in 2010. Korea intends to increase textile exports from US$18 billion now by 2.5% each year to US$25 billion.

Expansion of Korean domestic demand is an urgent subject. Because Korea's dependence on exports is too high, the influence of overseas market situations is immediately felt on the Korean textile market situation and makes it unstable. Expansion of Korean domestic demand is urgently needed in order to restrict variations caused by exports and stabilize the domestic market. According to the plan, domestic demand will expand to 42.3 billion won in 2010, double compared to 1999.