Trends of house construction and wood industries after the Asian economic crisis in Korea

The economic crisis of Korea occurred from the second half of 1997 had direct and serious influence all over the domestic economy. This study considered what influence change of the housing construction that determines wood demand, and the exchange rate that are the main causes of an economic crisis had on timber supply and demand structure or wood industrial structure. In results, rapid dullness of the housing construction activity under an economic crisis brought about the big reduction of wooden product demand including the plywood. In addition, although the sudden drop of an exchange rate raised the imported wood price and brought about reduction of the imported timber volume in 1998, it raised the domestic price of wooden products to 30% or more with the rise of a production cost to wood industries, such as plywood which depends for a great portion of product production raw material on imported timber, and brought about retreat of wood industry. However, in contrast with dullness of such wood industry, in order that flooring industry might sell the apartment by the housing construction company amid economic depression, the demand in the form which contains flooring in basic specification spread, and the demand of a flooring product was greatly expanded also under the economic crisis.