Less Communication

 

Korea’s ICT exports dropped after three months’ increase, while its ICT imports hit a record high. According to ICT export and import data released by the Ministry of Science, ICT and Future Planning on Nov. 12, Korea’s October ICT exports shrank 1.6 percent year-on-year to US$16.040 billion. In contrast, its October ICT imports expanded 10.4 percent year-on-year to US$8.770 billion, a record high. But ICT exports in October surpassed US$16 billion for the first time this year, recording the highest monthly figure. ICT imports grew 10.4 percent to US$8.770 billion in the month, resulting in an ICT trade surplus of US$7.270 billion this year.

ICT exports from January to October totaled US$145.560 billion, marinating at last year’s level despite a 7.6 percent decrease in the entire industry’s exports. Big contributors were cell phones and semiconductors. The former recorded exports of US$23.920 billion (an 8.6 percent increase), while the latter edged up 3.6 percent to US$52.940 billion.

From a global perspective, Korea’s ICT exports are not bad. In the first half of this year, OECD member countries’ ICT exports dropped 5.9 percent, but Korea’s ICT exports inched up 0.5 percent from a year before. In the same period, among major countries, Korea’s ICT surplus hit US$409.30 billion, placing second after China, which marked an ICT surplus of US$127.660 billion.

Observing them by items, exports of cell phones grew 37.6 percent to US$3.3300 billion. They recorded a double-digit growth rate, thanks to Korean companies’ launch of flagship smartphones and strong exports of smartphone parts. Exports of computers and computer peripherals inched up 3.8 percent to US$660 million, due to strong exports of backing storage devices such as solid state drives (SSDs).

But a drop in the prices of DRAM and NAND flash memory and a transformation of system semiconductor exports in the type of cell phone parts lowered semiconductor exports 7.5 percent to US$5.5 billion. Weakened global demand for displays and a cut in display unit prices sent down display exports 11.7 percent to US$2.7300 billion. By region, Korea recorded US$8.8800 billion, the highest-ever ICT exports to China.

In October, ICT imports rose 10.4 percent year-on-year to US$8.7700 billion, a record high. Cell phone imports jumped 60.6 percent to US$1.4400 billion on the strength of imports of foreign-made phones and reverse imports of cell phone parts. Korea also imported US$3.5800 billion worth of semiconductors, up 8.8 percent from a year before.

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