Electronics firms in South Korea see both export and domestic sales recording robust growth next year owing to favorable market conditions and an improving national image abroad. Based on surveys and reports from various market researchers, the Korea Electronics Association issued an upbeat outlook that the export of electronics parts and appliances will increase by 11.4 percent to $114.7 billion, and domestic sales will rise by 7.1 percent to 180 trillion won. Some 64 percent of 655 firms surveyed responded that their production volume would increase next year. Around 18 percent said their output would be maintained, while 18 percent gave a negative response. "Demand from Chinese factories for Korean-made electronics parts will rise, and the launching of digital broadcasting in Europe and the expansion of next-generation mobile services worldwide will also help exports grow next year," the association's director Yoon Dong-hoon said during a conference with industry leaders at COEX in southern Seoul. Yoon also pointed out that Korea's growing cultural influence in Asia, dubbed "Hallyu," is improving the nation's image and thus contributing to the export growth of electronics goods in the region. The report said that semiconductor and display industries will continue to be the main engines of growth next year. Led by a soaring demand for flash memories, chip sales may expand by 10 percent, reaching $34 billion in annual sales. The global semiconductor market is expected to rise by 8 percent to $245 billion, the association said. Sales of display equipment also will keep prospering next year. Despite the falling prices of large-screen televisions, sales of flat-panel displays such as plasma displays (PDP) and liquid-crystal displays (LCD) can grow by 50 to 60 percent and will account for 60 percent of total television sales, the association said. While the outflow of electronics goods grows, imports will also rise by 9.2 percent to $61.3 billion, the report said. Meanwhile, the contribution of the information technology (IT) sector to Korea's manufactured exports was the highest among major world economies, the Ministry of Information and Communication said. Citing a report by the Organization of Economic Cooperation and Development (OECD), the ministry said South Korea's IT sector accounted for 15.6 percent of the nation's trade surplus in the manufacturing sector as of the end of 2003, the highest ratio among 30 OECD member nations.