The rapid growth of the PC industry, having led the IT industry, after the foreign exchange crisis, recently exposed the limit of its driving power. The PC export decreased this year for the first time since 1998 and consequently many related enterprises stop the operation of their factories or gave up their business. The ambitious strategy for the leading country in the IT industry is in danger of the `detour` by the decrease of the PC business in addition to the plunge of the semi-conductor price in the international market.
According to the related business sectors, the sales of PC in the nation recorded 1.4 million which is 21 percent decreased from 1.77 million last year. And the PC export has plunged rapidly, worsening the situation of domestic IT business. According to the government report, the total exports of PC and PC appliances or accessories decreased by 19 percent this year, recording the total sum of 5.2 billion dollar export. This is the first time that the PC export records minus growth since 1998, which betrays the expectation of the government and the related business sectors that anticipated 40 percent growth of the PC export. Compared to the steep increase of the export by 99 percent in 1999 and 86 percent in 2000, even slight decrease can be interpreted as a collapse.
The stagnation of the PC industry does not discriminate whether it is large or small business.
The sales of the Sambo Computer in the second quarter of this year was only 600 thousands equal to 60 percent of the sale in the first quarter (950 thousands). Samsung Electronics successfully sold 520 thousands computers in the second quarter of this year, which is almost as same amount as the previous quarter`s sales. However, the PC export of Samsung Electronics also decreased during this period.
More and more, PC enterprises are closing their business. Daewoo Telecom, the top export business in 1998, is planning to sell its PC sector and will stop the production of lab top computers. In addition, 5 related firms dropped from the `Internet PC Project` due to the decrease of demand in the market.
The factories that had operated 24 hours a day early this year are taking a break now. Sambo Computer, whose PC export amounted 90 percent of the total PC export of Korea, was also struck by the stagnation of `e-Machines` in the U.S. IncubeTech (former Alex Computer) recently closed its assembly factory in Geumcheon, Seoul.
The stagnation of the PC business is caused by the stagnated IT business in the international market. The U.S. research firm IDC revealed that the international PC sales have decreased 3 percent in the second quarter of this year, which records the first minus growth in the past 16 years. The major companies such as Compaq, DELL, and Gateway are also suffering the decrease of the PC sales.
However, it is indicated that the plunge of the PC exports is caused by the low competitiveness of Korean PC industry, which has failed to follow up the trend of the international industries that are equipped with the advanced design, multi-functions, new concept PC, Internet appliances, and PDA. The PC export by only a few companies is another problem.
Cho Jun-Il, researcher of LG Economy Institute analyzed that ``the sales of the low priced PCs are sensitively responding to the fluctuation of the currency rate or other outside factors. Therefore, the companies have to concentrate on the development of the high additional value products in a long run.``