IT Exports
South Korea’s IT exports have finally bounced back from the doldrums.
According to the Institute for International Trade (IIT) of the Korea International Trade Association on October 30, Korea’s IT exports amounted to US$99.5 billion in January-September this year, a year-on-year increase of 9.6%. It is well over the growth rate of total exports (1.3%) over the same period.
IT products recorded US$50.6 billion in trade surplus, up US$6.5 billion from last year. Thus, the IT sector experienced the highest growth in exports, beating the auto industry (US$45.9 billion). What is noticeable is that the growth rate of parts (11.1%) is twice that of finished products (6.2%).
Parts made up 66% of the total IT exports in 2008, but increased to 83% during January-August 2013. In 2008, they represented 49.2% of all IT products in trade surplus, but soared to 82.8% Jan-Aug.
Among export items, semiconductors, communication devices, and printed circuit boards were the major contributors to growing IT exports.
The top export item was semiconductors (US$36.2 billion) due to advanced export structure through a balanced ratio of computer memory chips and systems. The second-largest export item was display panels (US$21.4 billion), which saw a decline in the importance of TVs and monitors, and the growing importance of mobile phones and tablet PCs.
As for cellar phones, parts accounted for 48.3% of total exports, nearly approaching the figure for finished goods (51.7%). However, it can be said that the exports of parts exceeded those of finished products, since semiconductors and LCDs for mobile devices are counted separately.
By region, IT exports to China comprised the largest proportion, with 39.9% (US$34.9 billion), followed by Hong Kong (12.5%, US$10.9 billion), the US (10%, US$8.8 billion), Vietnam (5.1%, US$4.5 billion), Singapore (4.7%, US$4.1 billion), Japan (4.2%, US$3.7 billion), and Taiwan (3.9%, US$3.4 billion).
In total, outbound shipments of IT products to China, Hong Kong, Vietnam, and Singapore grew, but those to the US, Taiwan, and Japan shrank.
IIT expects that next year will see a continuing positive trend in IT exports, helped by increasing volumes of exported semiconductors and mobile phones.
Nonetheless, it was reported that trade deficits in exports of semiconductors, display panels, and printed circuit boards to Japan and Taiwan have continued to grow. Hence, the Institute pointed out that some measures should be taken to address the deficit problem.