South Korea’s ICT product exports sluggish

The Korea Customs Service announced on Aug. 23 that South Korea’s ICT product exports decreased year-on-year for the first 20 days of this month. Specifically, semiconductor exports decreased 7.5 percent to US$6.27 billion and wireless communications device and computer-related exports dropped 24.6 percent and 32.8 percent, respectively. On the other hand, automobile, ship and auto parts exports increased 22 percent, 15.4 percent and 8.9 percent, respectively.

The same trend was shown in July. Semiconductor exports edged up 2.5 percent that month whereas the rate of increase was as high as 36.9 percent in March this year. In July, wireless communications device exports fell 16 percent year-on-year, computer-related exports fell 14.4 percent, and automobile and ship exports increased 26.3 percent and 30.3 percent, respectively.

South Korea’s ICT product exports are likely to keep falling in the second half after a satisfactory performance in the first half. According to the Ministry of Trade, Industry and Energy, ICT exports totaled US$122.6 billion in the first half, the highest H1 figure and up 18.9 percent from a year ago. In that period, exports to the five major destinations, including the United States and China, showed a double-digit increase without exception.

This rapid turn of events is because of the war in Ukraine showing no signs of ending, shutdowns of Chinese cities, global inflation, rising interest rates, etc. These factors are leading to a supply glut, a decline in demand, and an increase in inventory. South Korea’s overall exports are likely to be seriously affected in that semiconductor exports, mobile phone exports and the like account for 35 percent of its total exports.

Source: BusinessKorea