<Anchor>

With Kwon Aeri, a friendly economist. Reporter Kwon, most of the hits with Corona 19, but there seems to be one less place. As the situation is prolonged, it seems that these differences are beginning to be noticed little by little.

<Reporter>

Yes, knowing exactly how our major industries are specifically affected is also essential to responding in the future, but in the midst of the situation, the electronics and high-tech industries are less shocking than we were concerned.

In particular, the first quarter of semiconductors, the core industry in Korea, which influences the manufacturing and export economy, seems to be no worse than we were concerned about.

Samsung Electronics announced the interim results for the first quarter of yesterday (7th) and maintained operating profit of KRW 6 trillion. It's not as good as the end of last year, just before Corona 19, but it's definitely better than the first quarter of last year.

We do not announce the performance of each business, but the operating profit from semiconductors is estimated to be at least half of them.

In the beginning of last year, the global semiconductor game started to be bad, and it had a big impact on our overall overall slump last year.

The situation is better despite the corona than then.

Until the announcement of yesterday's earnings, the stock market was twice as good as expected, and expectations for SK Hynix, the second-largest semiconductor company that has not yet achieved 1Q earnings, are growing.

<Anchor>

It seems like the fortress is doing more online shopping. Distance education. Isn't that what affects semiconductor demand?

<Reporter>

Yes, there are actually two situations. Number one, if people want to do a lot of online activity, the huge data servers that are running somewhere have to keep increasing. And semiconductors are essential for such machines.

So if you spend your time telecommuting, videoconferencing, online classes, and watching TV or playing games at home on the weekends, the demand for semiconductors is bound to increase.

In the second opinion, nonetheless, if the overall economy contracted too much, server companies would not make good investments or try to keep up with what was there, and there was also a prediction that it would not be good for semiconductors.

The former seems to have been dominant until the first quarter. There is an atmosphere of "Oh, in the future, the demand for data will definitely increase. Let's invest" around the world's largest companies such as Microsoft.

Now, big companies such as YouTube, Netflix, Disney, and Sony, which provide online games, are reducing the quality of the video service to the world.

It is not an optical illusion for those who seem to have blurred the video screens they have seen well these days. People suddenly are at home too much, and looking at them a lot, I can't afford the amount of data.

To get ahead of the competition after the crisis is over, these high-tech companies will invest in systems to increase competition, and the demand for semiconductors will increase.

<Anchor>

Yes, but if this situation continues to be long, it will not have a good effect on these high-tech industries, and there are some predictions.

<Reporter>

Yes, if it is prolonged, it will not be possible to avoid this situation in the second situation mentioned above, the stagnation of all demands, and the chain disruption in manufacturing and distribution.

People feel crisis-conscious or actually lose their jobs, so if they don't buy smartphones or expensive home appliances, or if they don't, it's hard to endure by expanding the online realm. If the spots are constantly appearing, a large hole can be formed. This has already been seen everywhere.

Yesterday LG also announced the interim results for the first quarter, but LG was also better than expected.

However, LG is concerned that home appliances and TVs that are exported to the world are the main focus, and that the impact of the US and Europe has become apparent since March.

And almost all of Korea's leading infrastructure industries, except the electronic one, which we focused on today, have begun to suffer.

A typical example is a car that has been shut down by factories and dealers worldwide.

Deloitte, an accounting consulting group, announced several industry-specific impacts earlier this month. Among them, a more positive scenario today is a U-shaped recovery.

Nowhere is there any place that is experiencing a sharp rebound in the V-shaped recovery, and the U-shape, which is said to recover from the recession in the first half of this year, is also assumed here.

As of last year, Korea's four largest exports are semiconductors, automobiles, petroleum products, and automotive parts. Analysis showed that Corona 19 was also greatly affected in the relatively positive scenarios of second, third and fourth excluding semiconductors.

Most of the other major industries are similar. This is why it is said that it is time to think hard about this in the second quarter as an appropriate complementary measure to our key industries and how to help them recover as quickly as possible.

<Anchor>

Yes, I think it's time to narrow down that round part of the U-shape if we can't avoid U-shape recovery.