Sales of forklift trucks and other machinery are increasing rapidly in Korea, forcing manufacturers to make major upward adjustments to annual sales forecasts.

The Korea Herald reported that the nation's biggest forklift producer, Daewoo Heavy Industries and Machinery, recorded sales increases every month since January, with 560 trucks sold last month. This compared with an average last year of 200 to 300 trucks a month.

Daewoo, which supplies more than 50 percent of the Korean forklift market, predicted that, if the trend continued, it would top its yearly sales target of WON317 billion (USD261 million) and could reach WON340 billion (USD280 million).

Daewoo's domestic sales of excavators increased by 50 percent in the first quarter of this year, and its plant was operating at close to 100 percent capacity, up from around 80 percent during the Asian economic downturn.

The nation's second largest forklift manufacturer, Clark Material Handling Asia, reported that its sales had increased by 20 percent.

Hyundai Heavy Industries Corporation had sold around 760 excavators by the end of May, up 27 percent on the same period last year. Hyundai also reported a 20 percent lift in sales of forklift trucks.

The sales lift has encouraged Hyundai to upgrade its yearly sales target for its heavy equipment and machinery sector from WON389 billion (USD320 million) to WON480 billion (USD395 million).

Despite the booming domestic sales, Korean manufacturers remain concerned about the sluggish recovery in export sales.