Auto, petrochemical industries likely to show signs of recovery next year

Auto and petrochemical industries are likely to show signs of a gradual recovery next year, South Korea's largest business organization said Tuesday. The Federation of Korean Industries (FKI) said the potential demand for cars in the United States and Europe could recover and that increased sales of cars in emerging countries could persist. The assessment, if realized, is expected to give a boost to Hyundai Motor Co. and its smaller sister company Kia Motors Corp., the two major flagship units of Hyundai Motor Group, the world's fifth-largest carmaker. The federation that speaks for the country's large businesses also said that the petrochemical industry could improve next year and that the U.S. plan to increase facilities of shale gas is unlikely to affect supply and demand of petrochemical products. Shale gas is natural gas deposited in shale formation that is currently produced only in a handful of countries throughout the world, including the U.S. The newly developed natural fuel source is often referred to as a game-changer for its relatively cheap price, but the U.S. continues to strictly regulate its development, let alone its exports. Meanwhile, the FKI said uncertainty could persist in the electronics, shipbuilding and steel and construction sectors. Kim Ji-san, an analyst at Kiwoom Securities, said tablet computers could spread and demand for energy-efficient light-emitting diode light bulbs could go up. South Korea is set to impose a permanent ban on local production and imports of all incandescent light bulbs next year.