Increase in Wireless Communication and Semiconductor Resilience... First Export of the New Year Decreases by 15% (Comprehensive)

KCS Announces 'Export and Import Status from January 1 to 10'
Government "Expects Future Increase in Memory Prices Such as DRAM and Growth in Export Performance"

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The first export performance of the new year showed a declining trend. Exports from the 1st to the 10th of this month recorded $11.2 billion, down 15.4% compared to the same period last year. Due to 1.5 fewer working days, exports of major information and communication technology (ICT) items such as wireless communication devices increased.

According to the "Export and Import Status from January 1 to 10 (Customs Clearance Basis, Preliminary)" announced by the Korea Customs Service on the 11th, exports during this period were $11.2 billion, down 15.4% ($2.04 billion) from the same period last year. The number of working days was 6, which is 1.5 days fewer than last year. Considering this, the average daily export amount was $1.87 billion, an increase of 5.8% compared to last year.

Looking at export performance by major items, compared to the same period last year, ships (43.4%) and wireless communication devices (43.3%) increased, while semiconductors (-0.3%), petroleum products (-62.9%), and precision instruments (-13.5%) decreased. These figures do not reflect the number of working days; in the case of semiconductors, applying the average daily performance could show an increase in export value. The Korea Customs Service does not compile average daily export performance by item.

Semiconductors have a bright outlook as the demand for remote work and online education increased due to the COVID-19 pandemic, and the global semiconductor market is expected to grow about 8-10% this year.

Earlier, on the 5th, the Ministry of Trade, Industry and Energy and the Korea Semiconductor Industry Association predicted that semiconductor exports this year would surpass $100 billion for the second time, following the record high of $126.7 billion in 2018. The export forecast is between $107.5 billion and $111 billion.

An official from the Ministry of Trade, Industry and Energy said, "Considering that the number of working days from the 1st to the 10th decreased by 1.5 days, a 0.3% decrease in semiconductor export value is a relatively good result," adding, "As memory prices such as DRAM are expected to rise, export performance will improve further."

Wireless communication devices, consisting of mobile phones and mobile phone parts, continued to increase at the beginning of the month for two consecutive months following early November last year.

An official from the Ministry said, "Due to increased demand for parts from new product launches by large companies such as Samsung, export value also recorded an upward trend." In this regard, Samsung Electronics is scheduled to unveil three models on the 15th: Galaxy S21 (6.2 inches), Galaxy S21 Plus (6.7 inches), and Galaxy S21 Ultra (6.8 inches).

Exports by country showed a decline in China (-5.6%), the United States (-3.8%), Vietnam (-13.4%), the European Union (EU, -10.2%), Japan (-31.6%), and the Middle East (-49.3%).

The total number of working days in January is 22, which is 0.5 days fewer than last year. Since the working days from the 1st to the 10th were -1.5 days, the overall export performance for the rest of January may improve compared to now. Last December, exports increased by 12.6%, marking a double-digit growth for the first time in 2 years and 2 months since October 2018's 22.5% increase.

Imports from the 1st to the 10th of this month were $11.8 billion, down 22.9% ($3.52 billion) compared to last year. By item, semiconductors (10%), wireless communication devices (10.1%), and passenger cars (95.2%) increased, while crude oil (-52.6%), machinery (-19.1%), and gas (-41.7%) decreased.

By country, imports from Japan (8%) and Taiwan (18.7%) increased, but imports from China (-16.0%), the United States (-39.2%), the EU (-14.2%), and the Middle East (-64.1%) decreased.

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