BRENT EDU

June 18, 2010

Sales of electricity in the industrial sector posted a double-digit increase for the seventh consecutive month in May compared to a year earlier, rising 13.8 percent to 19.05 billion kilowatt-hours, the Ministry of Knowledge Economy said yesterday.

The industrial sector primarily encompasses mining and manufacturing businesses.

“The upswing in exports and rising industrial production mainly in the machinery equipment, auto and steel sectors contributed greatly to the increase in overall industrial electricity sales,” according to a press release by the ministry.

Korea’s exports surged 41.9 percent in May versus the same period a year ago, fueling demand for energy as companies scrambled to keep up with foreign orders.

Electricity sales in the machinery equipment, automobile, assembled metals and steel sectors increased by 34.3 percent, 31.6 percent, 25.1 percent and 23.1 percent, in that order. The refined petroleum, semiconductor, chemical, textile and shipbuilding industries also recorded double-digit growth in sales, rising 16.9 percent, 12.8 percent, 5.6 percent, 5.3 percent and 3.9 percent, respectively.

Korea’s overall electricity sales - including energy used in schools, homes and farms - also skyrocketed 11.1 percent to 33.82 billion kilowatt-hours in May, the 14 consecutive month they have grown.

Sales of household and general electricity rose 5.5 percent and 7.3 percent, respectively, due to the recovery in the job market and improved consumer sentiment. According to the ministry’s data, the number of people who are employed increased 40.1 percent in April compared with the same month last year. The country’s consumer sentiment index also came in at 111 points last month, meaning that many locals are optimistic about the direction of the economy.

Sales of electricity used in schools jumped 15.5 percent in May due to an expansion of facilities and the construction of new schools and renovation of old ones.

“The on-year rise in May’s industrial power sales shows that the overall business environment in Korea is also on a recovery trend,” said an industry official.