Semiconductor Export Share Expected to Recover to 20% Level After 2 Years

Dependence on Top 10 Products at 19.4% Until November... Lowest in 21 Years Expected

[Asia Economy Reporter Moon Chaeseok] This year, the proportion of semiconductors in South Korea's total exports is likely to recover to the 20% level for the first time in two years.

According to the Ministry of Trade, Industry and Energy on the 13th, semiconductor exports from January to November this year amounted to $89.7 billion, a 3.5% increase compared to the same period last year.

This corresponds to 19.4% of South Korea's total exports ($461.5 billion) during the same period, making it the largest share among all export items.

According to Korea Customs Service statistics, semiconductor exports from December 1 to 10 increased by 52.1% compared to the same period last year.

This semiconductor growth trend is expected to continue for the remaining month.

It is forecasted that the annual share of semiconductors in total exports could exceed 20% this year.

Semiconductors first surpassed the 20% mark in total exports in 2018, during the supercycle (boom period), recording a historic high of 20.9%.

Last year, due to the US-China trade dispute and a decline in semiconductor prices, exports slumped, and the share dropped to 17.3%.

This year, semiconductor exports steadily improved as demand increased due to remote work, online classes, and the 'stay-at-home' culture caused by COVID-19.

From July to November, semiconductor exports showed growth for five consecutive months, recording double-digit growth rates for three consecutive months.

In particular, annual exports of system semiconductors surpassed the historic high level of 2018, driving the upward trend.

However, the share of the top 10 major export items, including semiconductors, in total exports is expected to record the lowest level in 21 years.

According to the Korea International Trade Association's statistics on the 'Top 10 Export Products,' exports of the top 10 products from January to October this year amounted to $226.2 billion, accounting for 54.4% of total exports ($415.6 billion).

If this trend continues, the annual share of the top 10 export products is expected to fall to the lowest level in 21 years since 1999 (52.3%).

Since 1999, the share of South Korea's top 10 export products steadily increased, reaching 62.4% in 2009, then gradually declined, hovering in the high 50% range since 2012.

By item, the export shares of six out of ten products decreased compared to last year, including automobiles (7.9%→7.2%), petroleum products (7.5%→4.9%), automobile parts (4.2%→3.5%), flat panel displays and sensors (3.8%→3.4%), steel plates (3.4%→3.2%), and wireless communication devices (2.6%→2.5%).

Three products saw an increase in export share: semiconductors (17.3%→19.5%), synthetic resins (3.7%→3.8%), and ships, offshore structures, and parts (3.7%→3.8%).

The decline in export dependence on the top 10 products is due to a sharp decrease in petroleum product exports caused by low oil prices, while exports of promising items such as biohealth and cosmetics expanded.

Biohealth exports from January to November this year amounted to $12.24 billion, a 49.0% increase compared to the same period last year. Cosmetics exports reached $6.89 billion, up 15.7%.

An official from the export authorities said, "It is important to continue to firmly support exports of long-standing competitive products like semiconductors in the global market while increasing the export share of new high value-added products."

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