Incheon manufacturing and venture sectors face economic pressure

Manufacturing companies in Incheon are facing significant economic challenges. According to a survey by the Incheon Chamber of Commerce and Industry, 68.4% of surveyed manufacturers expect to fail to meet their operating profit targets for the year. The Business Survey Index (BSI) for the fourth quarter stands at 78, indicating a pessimistic outlook across all sectors, including automotive parts, semiconductors, machinery, and electronics.

The primary driver of this decline is the rising cost of production, specifically raw materials and energy, cited by 45% of respondents. Additionally, weak sales and order conditions have contributed to the downturn. Many local firms are highly vulnerable to external variables, with nearly half of the companies reporting that procurement costs for imported raw materials and components exceed 20% of their annual revenue.

Parallel to these profit struggles, the structure of Incheon’s venture ecosystem shows high vulnerability. Approximately 74.3% of the region's 1,781 venture companies are in the manufacturing sector, a figure significantly higher than the national average of 56%. Furthermore, 71% of these ventures are small-scale enterprises with annual revenues below 14 billion won. This heavy reliance on manufacturing and small-scale operations leaves the local economy susceptible to global supply chain disruptions and raw material price volatility. Experts and local officials suggest an urgent need to transition toward high-value industries such as AI, robotics, and biotechnology to ensure sustainable growth and improved employment rates.