Continuous Falling
South Korea’s exports of information and communications technology (ICT) products fell for the 10th consecutive month, causing concerns.
ICT exports sank 6.6 percent year on year in July to US$13.02 billion (14.34 trillion won) as the nation’s three largest businesses – semiconductors, cellphones and displays – continued to be weak in foreign markets, according to the data compiled by the Ministry of Trade, Industry and Energy. It marked the 10th consecutive on-year decline since October last year.
Exports of semiconductors fell 2.6 percent on-year to US$5 billion (5.51 trillion won) in July. Shipments of cellphones declined 10.1 percent year on year to US$1.74 billion (1.92 trillion won) last month as an increasing number of customers was waiting for strategic models, including Samsung Electronics’ Galaxy Note 7, which led to the decreased demand for complete products.
Overseas sales of displays plunged 19.2 percent on-year to US$2.28 billion (2.51 trillion won) in July due largely to the global oversupply and the excessive competition with Chinese manufacturers.
By region, exports to Vietnam and India, which have a large number of overseas production bases, increased last month compared to the same period a year earlier, while those to China and the European Union sank.
Imports of foreign ICT products, mainly system semiconductors and displays, retreated 6.4 percent on-year to US$7.2 billion (7.93 trillion won) in July.
For the trade balance, which is exported goods minus its imported goods, South Korea recorded a US$5.82 billion (6.41 trillion won) trade surplus in July this year. The ICT trade balance last month accounted for 74.7 percent of the nation’s total trade balance.