Signal Korean industries split between a technology-led boom and a deep slump in heavy sectors

Summary

Industry outlooks compiled by the report divide Korean sectors into four phases of the business cycle for 2026. Technology-led industries such as semiconductors, IT and telecommunications, and shipbuilding are expected to boom, while automobiles remain broadly stable. Batteries and displays, which endured long downturns, are projected to begin recovering, helped by energy storage demand and wider OLED adoption. By contrast, petrochemicals, refining, steel and construction face structural oversupply and other risks that could push them into a severe slump. Construction is expected to feel the full weight of project finance risks and plunging housing starts in 2026.