[Infostock Daily= Reporter Ryu Ki-Heon] Sejong University, Professor Kim Dae-jong of Sejong University's Business Administration Department, said "The online shopping industry is growing more than 20% annually due to Corona 19. South Korea announced on 29th that it should lead the wave of change of the huge world of the fourth industrial revolution such as K-prevention, bio industry, untacked industry, and artificial intelligence"
The online shopping industry has grown by an average of more than 20% annually since 1991, especially in 2020, it is expected to increase by more than 25% due to Corona 19, reaching 162 trillion won.
In April, online transactions increased significantly in food services (83 percent), agricultural products (69%), and food and beverages (43%), while culture and leisure (-85 percent), and travel and transportation services (-69%) fell sharply compared to the same month last year.
In particular, 66% of all online shopping transactions were traded on mobile.
“In the future, all companies should innovate their corporate strategies around mobile phones that are linked to mobile phones, and online and mobile have become the most important factors in all areas, including production and sales,” Kim professor said.
The online shopping industry has a very high production inducement effect and employment inducement effect to reduce rent, labor cost, and transaction cost.
According to the employment inducement effect, 5.8 people are employed per 1 billion won in Korea industry average sales. However, the online shopping industry has hired 16 people for 1 billion won sales as the number of employees such as SW developers and delivery services increases. It creates more jobs than 12 wholesale and retail workers.
Due to Corona 19, the game industry such as Naver, Kakao, NCsoft, and Netmarble, which are representative untacked companies, are developing greatly. Microsoft, the leading untacked company in the United States, has a market capitalization of 1800 trillion won and Amazon 1,600 trillion won, up from before Corona 19.
“The U.S. and South Korea’s untacked industries and businesses will grow further because of Corona 19. There is a high concern about the re-proliferation of Corona 19 recently, but it will not fall sharply due to the abundant cash on the market" Kim said.
“The domestic BBIG (bio, battery, internet, and game) industry will continue to grow. U.S. blue-chip companies such as Apple, Microsoft, and Amazon are growing even more despite Corona. We need to make long-term investments until we retire around the age of 60" he advised.
As of 2019, Korean companies' foreign direct investment outflows amounted to $ 61.8 billion, five times more than the $ 12.5 billion inflow. The corporate tax rate is 15% in Germany, 21% in the US, 23% in Japan and 27% in Korea.
“The government fosters the untacked industry and creates a good country for business. We need to lower the corporate tax rate to below the OECD average of 22 percent and prevent the outflow of Korean companies to create jobs in Korea” he said.
Reporter Ryu Ki-Heon okyou93@infostock.co.kr
