South Korea's auto exports were
estimated to grow 3.1 percent in 2013 despite lasting instabilities
in the global economy that will be offset by positive effects from
the free trade agreement (FTA), the economy ministry said Monday.
According to the Ministry of Knowledge Economy, the country's
auto exports were forecast to reach 3.3 million units in 2013, up
3.1 percent from estimated 3.2 million for this year. The 2012
estimation was 1.5 percent higher than the previous year.
The ministry cautioned that the local auto industry will show a
slight growth next year amid the persistent uncertainties in the
global economy, saying that the eurozone fiscal crisis, the U.S.
fiscal cliff and economic slowdown in China will have a negative
impact on the auto sector.
However, the ministry noted that the auto industry will be
boosted by the rising demand from North America and the positive
effect from additional cuts in tariff following the FTA with the
European Union (EU).
Meanwhile, domestic demand was expected to reach 1.55 million
vehicles in 2013, up 1.2 percent from the estimated 1.53 million
units for 2012, the ministry said, noting that demand for cars will
be weighed down by risk factors such as massive household debts and
weaker consumer confidence amid the global economic slump.
