This year, Korea's venture business exports are expected to reach an all-time high, exceeding US$20 billion.
According to the Korea International Trade Association (KITA), Korean venture companies’ exports are expected to rise 14.6 percent year on year to US$14.791 billion in the January-September period of this year.
Venture firms' annual exports have been growing since they slid for two consecutive years in 2012 (-7.5%) and 2013 (-5.9%). Since rising 9.5% year on year to US$16.7 billion in 2014, their exports had grown every year and arrived at a record high of US$18.05 billion last year.
This year, their exports are stronger, maintaining double-digit growth. Their exports recorded double-digit growth in seven years since 2010 (an increase of 50.7%).
This year, their exports are brisk because their exports to major countries such as China, Vietnam, and the United States are on the rise. Their exports to China totaled US$ 3,621 million from January through September this year, up 13.8 percent from the previous year.
Their exports to Vietnam exported US$2.11 billion, up 51.6 percent from a year before. China and Vietnam are the first and second export countries for Korean venture start-ups. Their exports to the United States also jumped 5.8 percent year on year to US$1.88 billion from January to September of this year.
By item, their exports were led by control, measurement and analysis devices (up 85.7%), semiconductor manufacturing equipment (up 33.3%), and flat panel display manufacturing equipment (up 57.1%).
However, the growth rate of their exports this year stood at 14.6%, which fell short of Korea’s total export growth rate of 18.5%. This is attributed to a decrease in exports of non-memory semiconductors such as wireless communication device parts, integrated circuit semiconductors and individual device semiconductors.
Particularly in the case of parts for wireless communication devices, the expansion of production by parts makers in Vietnam is playing a part in cutting exports.
"Semiconductors, memories, ships, petrochemicals and petroleum products which accounted for about 70% of the increase in Korea’s exports this year, are all major products of large Korean companies," said Moon, a senior researcher with the KITA. Memory semiconductors showed double-digit declines. "On the other hand, major export items of Korean venture companies, wireless communications device parts and non-memory semiconductors, showed double-digit drops.