South Korea's ICT Exports Triple in October on Chip Surge

South Korea’s exports of information and communications technology (ICT) products more than tripled in October to US$70.35 billion, as demand for premium memory chips pushed semiconductor shipments sharply higher, Yonhap news agency reported, citing data from the Ministry of Science and ICT. The figure compares with US$23.29 billion a year earlier and marks the sharpest growth on record for the month.

According to the Seoul Economic Daily, the 202.0% year-on-year rise is the highest monthly growth rate ever recorded for the country’s ICT exports. The data was released on Sunday in a report on October ICT trade trends by the Ministry of Science and ICT and the Ministry of Trade, Industry and Energy.

October’s total was the second-highest monthly figure on record, behind September’s US$75.1 billion, Yonhap said. ICT products made up 61% of South Korea’s total October exports of US$115.28 billion, keeping the share above 60% for a third straight month.

ICT imports rose 52.7% to US$19.8 billion, leaving a trade surplus of US$50.55 billion for the sector, the Seoul Economic Daily reported.

ICT Exports: Memory chips and SSDs

Semiconductor exports climbed 259.4% from a year earlier to US$56.47 billion, accounting for 80.3% of all ICT exports. Yonhap attributed the jump to demand for premium memory products and persistently high memory prices.

Within chips, memory exports surged 360.5% to US$50.14 billion, with DRAM alone up 595.3% to US$33.77 billion, according to the Seoul Economic Daily. System chip exports rose 32.5% to US$5.66 billion, while foundry exports fell 6.9%.

Exports of computers and peripherals rose 439.3% to US$5.99 billion, led by high-capacity server solid-state drives (SSDs). SSD shipments reached US$5.64 billion, up 584.3%.

Display exports increased 23.6% to US$2.03 billion on OLED panels for foldable devices and laptops, while mobile phone exports grew 6.5% to US$1.71 billion on sales of premium models. Telecommunications equipment exports rose 26.5% to US$230 million.

US shipments jump more than sixfold

Exports to China, including Hong Kong, the largest market, rose 213.1% to US$27.21 billion. Shipments to the United States climbed 522.4% to US$15.56 billion, with chip exports to the US up 734.1% and SSD exports to the US up 922.7% to US$3.83 billion, the Seoul Economic Daily said.

Gains were narrower for smaller companies. ICT exports by small and mid-sized firms rose 10.3% to US$5.61 billion, while their semiconductor exports fell 6.2%.

What’s next

South Korea’s overall exports rose 93.7% in October, taking the January–October total to about US$930 billion, the Jeonkyung Ilbo reported earlier this month. The Ministry of Trade, Industry and Energy expects annual exports to pass US$1 trillion in November if the current trend holds.

Deputy Prime Minister and Finance Minister Lee Hyung-il told finance officials on Nov 11 that the country was close to reaching US$1 trillion in exports for the first time, while urging vigilance over trade policy uncertainty in major economies, Nocut News reported.

#businessnews