Increase in Semiconductor Export Share Amid COVID-19, Decrease in Automobile Exports

[Asia Economy Reporter Park So-yeon] Amid the overall impact of COVID-19 on South Korea's major export items in the first half of this year, the share of semiconductors in total exports actually increased, while automobiles saw a significant decline.

Computers entered the top 10 export items, benefiting from the expansion of the untact (contactless) economy.

According to trade statistics from the Korea International Trade Association on the 26th, South Korea's total exports from January to June this year amounted to $240.642 billion, with the top 10 export items accounting for 53.8% of the total.

Among the 10 items, nine recorded negative growth except for computers, causing the export share of the top 10 items to decrease by 2.3 percentage points compared to last year (annual basis), which was 56.1%.

By item, semiconductor exports, which hold the largest share, amounted to $46.863 billion, accounting for 19.5% of South Korea's total exports. This is an increase of 2.2 percentage points from last year's 17.3%.

Although export value decreased by 1.3% compared to the first half of last year, it performed relatively well compared to other items that saw double-digit declines, resulting in an increased share.

Last year's semiconductor market, which was stagnant due to oversupply and price drops, enjoyed a special demand this year as COVID-19 led to increased remote work and online education, boosting demand for PCs and laptops.

On the other hand, the second-ranked item, automobiles, saw exports plunge by 27.3%, shrinking its export share from 7.9% last year to 6.5% this year.

The third-ranked petroleum products were hit hard by falling oil prices. Exports dropped sharply by 36.9% in the first half, reducing their export share from 7.5% to 5.2%.

Automobile parts, which ranked fourth in exports last year, fell to sixth place. Exports decreased by 28.5%, and their share dropped from 4.2% to 3.4%.

The fourth place was occupied by ships, offshore structures, and parts (4.0% share), followed by synthetic resins (3.8%) in fifth place, and steel plates (3.2%) in seventh place.

Flat panel displays and sensors, which had the fifth highest export share last year, slipped to eighth place (3.1%).

Computers entered the top 10, riding the COVID-19 special demand. Computer exports in the first half surged 80.8% year-on-year to $6.657 billion, ranking ninth with a 2.8% export share.

The tenth place was wireless communication devices (2.4%), while plastic products, which ranked tenth last year, dropped in ranking.

In the second half of the year, major export items are expected to continue experiencing sluggish exports due to the global economic downturn caused by COVID-19.

The Korea Institute for Industrial Economics & Trade recently forecasted in its "Second Half Major Industry Outlook" that "exports of automobiles, home appliances, textiles with strong consumer goods characteristics, steel and refining affected by unit price changes, petrochemicals, and displays suffering from weakened competitiveness will continue to decline in the second half."

On the other hand, information and communication devices and semiconductors, related to the transition to a contactless society, are expected to continue export growth in the second half.

This content was produced with the assistance of AI translation services.