4 Consecutive Years of Korea's Exports at $500 Billion...Semiconductors 20%, Biohealth Surpasses $10 Billion for the First Time

Ceremony Held on the 8th to Commemorate the 57th Trade Day

President Moon Jae-in delivering a congratulatory speech on the morning of the 8th at the '57th Trade Day Ceremony' held at COEX in Gangnam-gu, Seoul. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] Despite the challenging situation caused by the COVID-19 pandemic this year, Korean companies performed well in key export items such as semiconductors and automobiles. In addition to traditional mainstay products, strong results were also achieved in new growth engines like biohealth and hydrogen/electric vehicles. However, due to the impact of COVID-19 this year, the total export volume is expected to fall short of 600 billion dollars.

According to the Ministry of Trade, Industry and Energy on the 8th, semiconductor exports grew by 3.5% from January to November compared to the same period last year. Recording 89.7 billion dollars from January to November, semiconductors accounted for about 19.4% of Korea's total exports. The export share of semiconductors is the highest since 2018, when the memory semiconductor market experienced a supercycle (boom), at 20.9%.

Even when expanding the scope to the 2010s, when the 'DRAM myth' of Samsung Electronics and SK Hynix began in earnest, this year had the second-largest share. The resilience that strongly supported Korean exports was also shown during the 1999 IMF crisis (19.8 billion dollars, 16.2%) and immediately after the 2010 global financial crisis (50.7 billion dollars, 19.1%).

Computers (67.2% growth) also showed an increase for 14 consecutive months, driven by the special demand of the untact economy and global competitiveness. Organic Light Emitting Diode (OLED, 2.2%) and secondary batteries (0.6%) are both expected to achieve their highest annual performance ever. Automobiles (-13.9%), which suffered due to shutdowns and lockdowns in major countries such as the United States and the European Union (EU), have shown an increase for three consecutive months recently.

The 'Big 3' items that the government is fostering as next-generation growth industries broke historical records. System semiconductors (15.4%) recorded 27.3 billion dollars from January to November, achieving the highest performance ever. They accounted for 5.9% of Korea's total exports. Biohealth (49%) recorded 12.2 billion dollars by November, surpassing 10 billion dollars in annual exports for the first time ever. With 15 consecutive months of growth, the outlook remains bright.

Exports of electric and hydrogen vehicles grew by 73%, achieving the highest performance ever. Based on export value, they accounted for 10.7% of total automobile exports, increasing their presence. The number of exported units increased by 75% and 35%, respectively.

Cosmetics increased for six consecutive months, setting a record high in November. An official from the Ministry of Trade, Industry and Energy stated, "The trend of breaking maximum performance records every year is expected to continue this year as well." Agricultural and marine food products also recorded the highest monthly export in November, making it certain to break the annual maximum export record.

From January to November this year, the trade balance (exports minus imports) recorded a surplus of 39 billion dollars, achieving a surplus for 12 consecutive years. The scale of trade decreased somewhat due to the impact of COVID-19. Exports fell by 7.1% to 461.4 billion dollars compared to January to November last year, and imports decreased by 8.1% to 422.5 billion dollars.

Exports are expected to reach 500 billion dollars for the fourth consecutive year this year. However, surpassing 600 billion dollars, which was recorded as the world's seventh largest after the United States, Germany, China, Japan, the Netherlands, and France in 2018, seems difficult.

The fact that exports to China, the United States, and the EU all turned positive in the third quarter is a positive sign. Exports to China, which were -4.5% in the second quarter, grew by 2.2% in the third quarter. During the same period, exports to the United States (-17.5% → 10.1%) and the EU (-19.9% → 0.2%) also rebounded. However, as COVID-19 continues to spread worldwide, uncertainty in exports remains.

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