Korea needs to reduce its semiconductor export dependence on China and strengthen chips-related exports to the U.S. to gain a greater global market share, according to a report released Wednesday by the Korea International Trade Association (KITA), titled “Korea’s opportunities and threats due to global semiconductor supply chain reorganization.”

The report states that Taiwan benefited the most from the U.S.-led reorganization of the global chip supply chain, and Korea did not benefit much to secure competitiveness in the U.S. semiconductor market.

The U.S. reorganized its semiconductor supply chain centered on its allies, drastically reducing semiconductor imports from China and switching suppliers mostly to Taiwan and Vietnam.

China’s share of U.S. semiconductor imports plummeted from 30.1 percent in 2018 to 11.0 percent last year, while Taiwan’s share rose from 9.7 percent to 17.4 percent and Vietnam’s share increased from 2.6 percent to 9.1 percent.

However, Korea’s share increased by only 2.1 percentage points from 11.2 percent in 2018 to 13.2 percent in 2021, indicating only a slight benefit from the U.S. reduction in reliance on China compared to other countries.

“The U.S. supports a 25-percent tax credit for semiconductor facility investment, and Taiwan also proposed an amendment to its Industrial Innovation Act in November to expand the tax credit ratio for semiconductor R&D and facility investment from 15 percent to 25 percent,” the report stated. “Korea only increased the tax credit for large corporations on semiconductor facility investment from the current 6 percent to 8 percent, so there is concern that the country will fall behind in the global semiconductor competition. In the short term, we need to strengthen the stability of supply and demand for key equipment and materials by participating in the supply chain reorganization led by the U.S.”

The report emphasizes the need to secure competitiveness in the U.S. semiconductor market in order to break away from excessive dependence on China in semiconductor exports and secure new opportunities and demand.

China is Korea’s largest export destination for semiconductor-related items such as system semiconductors, memory semiconductors, semiconductor equipment and semiconductor materials. Last year’s exports to China broke down to: 32.5 percent of Korea’s system semiconductors, 43.6 percent of its memory semiconductors, 54.6 percent of its semiconductor equipment and 44.7 percent of its semiconductor materials.
Source:Korea Times

Real estate investment in Asia-Pacific is projected to drop 5 to 10 percent year on year (yoy) in 2023, following a steep 25 percent yoy decline this year, amid tumultuous economic conditions that are weighing on sentiment.
According to a study by real estate consultancy JLL, hospitality properties are the only real estate assets likely to book steady growth next year, as capital inflows toward hotels are expected to rise around 6 percent yoy, despite slowing down from this year’s 10 to 15 percent growth

thanks to border reopening in many Asia-Pacific countries.
JLL estimates that real estate investors will also look to sectors benefiting from structural tailwinds and higher potential returns, such as data centers, logistics and a slew of scheduled greenfield projects in emerging markets, including India and Southeast Asia.
Japan, meanwhile, is predicted to emerge as the most attractive real estate investment destination thanks to a weakening yen coupled with the country’s low interest rates.
Singapore’s status as a safe haven and its sound property fundamentals will continue to attract investors, while Australia will likely draw core investors because of the country’s highly transparent framework and low beta characteristics. Source:The Jakarta Post

RIYADH: The UAE’s Dubai Land Department has launched a strategic plan which aims to position Dubai as a world leader in the real estate investments sector.

According to a report published by the news agency WAM, the primary mission of the strategic plan is to provide seamless real estate services in Dubai, along with implementing effective legislation and providing the necessary human capital for the sector to grow and evolve.

The strategy, which will be implemented until 2026, also aims to increase the contribution of the real estate sector to the emirate’s GDP, which will in turn play a crucial role in helping Dubai to become one of the most developed economies in the world.

The WAM report further noted that the strategy is based on five main pillars deemed essential for the growth of Dubai’s real estate sector.

The first pillar is directed at pioneering a real estate model that enhances the sector’s readiness and sustainability, along with ensuring effective governance in the sector.

Under the second pillar, Dubai aims to become a real estate incubator by fostering a globally attractive environment and harnessing technology to enable the development of real estate solutions.

The third pillar of the strategy is centered on a data-driven approach, while the fourth pillar will promote a flourishing digital ecosystem in the real estate sector.

The fifth pillar concentrates on shifting to an employee-first culture and adopting a human-focused approach.

The strategy is aligned with the adoption of Resolution No. 81 approved by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, who approved the organizational structure of the Dubai Land Department.’

Meanwhile, recent data released by DLD showed that as of Dec. 26, Dubai real estate market reported 515 sales transactions worth 1.44 billion dirhams ($408 million), and 19 gift deals amounting to 137.87 million dirhams.

According to DLD’s data, the sales included 483 villas and apartments worth 1.14 billion dirhams, and 32 land plots worth 299.29 million dirhams.

Source: Arab News

President Xi Jinping called on top leaders of his inner circle to adhere to the Communist Party’s instructions “under all circumstances” during a two-day Politburo session that concluded on Tuesday.

“Under all circumstances, we should resolutely toe the party’s line and form a harmony in the symphony conducted by the party,” Xi said, according to state news agency Xinhua. “[We] must never deviate from the notes.”

He added that all officials must uphold “absolute loyalty” to the party and genuinely “love the party” and have concern for it at every moment.

Xi’s remarks were made during a “democratic life meeting”- often described as a self-criticism session – of the 24-member Politburo, the party’s decision-making body, according to Xinhua.

At the session, each member of the Politburo took turns speaking and assessing their compliance with the party’s rules on upholding “concentrated leadership” and clean politics, Xinhua said.

Xi commented on each member’s remarks and gave clear instructions for them to follow, the report added.

Source: South China Morning Post

Bangkok and Chonburi are the two provinces where most foreigners bought condominiums in the first nine months of 2022, the Government Housing Bank’s Real Estate Information Centre (REIC) said.

The centre reported on Wednesday that 75.2% of condominium ownership that had been transferred to foreign nationals from January to September this year were either in the capital or the eastern resort province.

Bangkok saw 3,325 units sold to foreigners, or 45.6% of all condo units sold to foreigners, while Chonburi recorded 2,155 units sold, or 29.6%.Other provinces on the list, but at significantly lower numbers than the top two, are Samut Prakan, Phuket, and Chiang Mai.

The REIC noted that about 30% of condo units sold to foreigners are pre-owned.

“Sales of condominiums to foreign customers have been gradually rising in the past two years, but are still lower than the pre-pandemic level,” said the center.

“The reopening of borders, lifting of Covid restrictions, recovery of the tourism industry and the local economy are factors that have driven up property sales to foreigners.

“The REIC added that the biggest foreign clients of the condominium market have always been Chinese.

However, since China has yet to fully reopen, Thai property sellers must seek buyers from other markets, such as Europe, the US, Australia, Russia and India.The centre said that the recent announcement by the Chinese health authorities that the country will scrap quarantine measures for overseas arrivals starting January 8 could be an immediate gamechanger for Thailand’s tourism industry, but the impact of the measure on the property sector would be visible only late in the second half of 2023.

“The property market trend for foreigners next year remains to be seen, as Chinese buyers might not have the same purchasing power as before, due to the battering the Chinese economy has taken for nearly two years because of the strict zero-Covid policy,” the REIC pointed out.

“Plus, to boost its economy the Chinese government could impose measures that promote domestic spending rather than overseas purchases.”

Source: The Nation