KSICSection

KSIC C—Manufacturing

Section · Korean Standard Industrial Classification (Rev. 11 (2024))

Where C sits

C Manufacturing

Contains 25 narrower codes

Description

1. Definition Manufacturing refers to industrial activities that convert raw materials (substances or components) into new products with different properties by applying physical or chemical actions to them. Therefore, processing activities that do not change the essential properties of the goods, such as simply sorting, organizing, dividing, packaging, or repackaging the goods, are not considered manufacturing activities. Such manufacturing activities may be carried out in factories or at home using power machinery and manual labor, and the produced products may be sold in wholesale or retail form. Professional repair of industrial machinery and equipment used as capital goods (fixed capital formation) is also classified as manufacturing. However, repairs of computers and peripherals, personal and household goods, and automobiles are classified as repair businesses (95).

2. Distribution of Raw Materials and Finished Products Materials used by manufacturers may include agricultural, forestry, and fishery products, minerals, as well as products (intermediate or semi-finished products) produced by other manufacturers. For example, refined copper becomes a raw material for manufacturing copper wire, and copper wire becomes a raw material for manufacturing electrical appliances. These raw materials can be purchased directly from producers or obtained through the market, or secured by transferring products between business units within the same enterprise. While production by such manufacturers may be carried out based on orders from general consumers, it is typically driven by orders from related wholesalers and retailers, inter-factory transfers, and industrial users.

Cross-references for C

A. The assembly of purchased machine parts is classified as manufacturing. However, industrial activities involving the purchase of standard products or component parts for building structures and equipment—such as bridges, water tanks, storage and warehouse facilities, railways and elevated roads, elevators and escalators, piping, fire sprinkler systems, central heating, ventilation and air conditioning, lighting and electrical wiring—and their assembly and installation at construction sites are classified under the appropriate categories of "F: Construction."
B. Industrial activities involving the specialized assembly and installation of industrial machinery and equipment for a business unit are classified under the same category as the industry manufacturing the relevant machinery and equipment.
C. In cases where a manufacturing or wholesale/retail business assembles or installs machinery and equipment incidentally during the process of selling such machinery and equipment, it shall be classified as manufacturing or wholesale/retail business according to the business's primary activity. However, if the primary added value arises from the maintenance and repair sector, it shall be classified as "34: Repair of Industrial Machinery and Equipment" or "95: Repair of Personal and Consumer Goods."
D. Regeneration activities, such as the essential modification, improvement, and remanufacturing of various goods, shall be classified as manufacturing.
E. Businesses that primarily assemble and manufacture dedicated component parts, accessories, attachments, and parts for machinery and equipment shall, in principle, be classified under the same category as the manufacturing of the machinery and equipment in which such components, accessories, and parts are used. However, if these component parts and accessories are manufactured by metal casting, forging, pressing, or powder metallurgy methods, or by rubber or plastic injection and compression molding, they shall be classified separately according to the materials and processing/molding methods.
F. When manufacturing general (universal) component parts and components of mechanical equipment such as engines, pistons, electric motors, electrical equipment assemblies, valves, gears, and rolling bearings, they shall be classified into the relevant industrial sector according to the type of these component parts and components, regardless of the machinery or equipment in which they are combined and used.
G. Printing and printing-related services are classified as manufacturing.
H. Cases where a manufacturing plant is equipped with facilities and specific products ordered by others or other businesses are manufactured and delivered on a commission or contract basis, excluding "1340 Textile Dyeing, Finishing and Finishing," "181 Printing and Printing-Related Industries," and "2592 Metal Heat Treatment, Plating and Other Metal Processing," are classified into the appropriate industrial categories of manufacturing according to the type of product manufactured.
I. Cases where a business does not manufacture a specific product directly but commissions another manufacturer to produce it and then takes over and sells it, it shall be classified as manufacturing if all four of the following conditions are met. 1) directly planning the product to be produced (performance and functional levels, invention and design, raw material composition design, sample production, etc.), 2) providing raw materials purchased in one's own account to the contracting entity (including cases where a raw material specification is provided and the costs are borne in one's own account), 3) having the product manufactured in one's own name, and 4) taking it over and selling it directly in the market under one's own responsibility.