Exports, Trade Balance of ICT at Record Highs in 2013

Korea’s exports in the information and communications technology (ICT) sector and its trade balance posted all-time highs during January-September this year. 

The Ministry of Science, ICT and Future Planning (MSIP) announced on October 10 that ICT exports hit a record high of US$124.88 billion in the period, a 10.4% increase over the same period last year. This has resulted in the biggest trade surplus of US$65.6 billion, up 17.4% compared to the same period in 2012. 

In September, exports of ICT goods recorded US$15.11 billion, a year-on-year increase of 7.5%, leading to a trade surplus of US$8.16 billion. Figures for September show the second-highest monthly exports and trade surplus on record, despite a decrease in days of operation stemming from the Chuseok holidays.

Last month, mobile phones, semiconductors, and digital TVs are the main contributors to export surges, while exports of display panels, computers, and peripheral devices decreased. 

Exports of cellular phones reached US$2.23 billion in September, hitting the US$2 billion mark again in four months. The corresponding figure for smartphones was US$1.4 billion, up 20.5% from the previous month. 

Semiconductor exports increased for the 12th straight month in September, reaching the highest monthly figure at US$5.41 billion. The increase is attributable to a positive trend in exports of memory chips and system-on-chip (SoC) products. In particular, memory chips recorded a double digit rise in exports (45.9%) for the 7th consecutive month due to an increase in demand for mobile memory chips and a rapid rise in prices for memory chips. The price hike was driven by concerns about the dwindling supply of products arising from a massive fire at SK Hynix’s factory in Wuxi, China.

Exports of digital TVs gained 36.2% to reach US$830 million. Premium products such as smart TVs led the exports of LCD TVs, and UHD TVs introduced in June also contributed to export expansion.

Display panels inched down 19.1% in exports to hit US$2.27 billion, owing to weak demand for TVs and a decrease in prices for TV panels. Computers and peripheral devices also edged down 3.5% in exports to reach US$590 million, owing to the continued slump in the global PC market.

Among countries, outbound shipments to the US, ASEAN countries, and China (including Hong Kong) increased. Exports to China recorded US$7.78 billion (up 10.3%), followed by US$2.1 billion to the ASEAN countries (a 27.4% increase), and US$1.4 billion to the US (up 13.4%). What is noticeable is that China posted an all-time high in exports, accounting for 51.5% of total ICT exports. 

In contrast, exports to Japan fell by 18.2% to reach US$530 million because of the weak yen and sluggish sales of major export items, including semiconductors and mobile phones. Outbound shipments to the EU also dropped 12.3% to post US$1.22 billion.