May ICT Exports Reach $17.7 Billion, Second Highest Ever...Semiconductors Hit $10 Billion Mark for First Time in 30 Months

Ministry of Industry Announcement... ICT Exports in May Reach $17.73 Billion, Up 27.4% YoY

A researcher is showcasing an MPW test chip in the 12-inch semiconductor testbed cleanroom at the Daejeon Nano Convergence Technology Institute. It is forecasted that the global semiconductor shortage will continue until mid-next year. As the local industry in Gunnae, which is pursuing a semiconductor ecosystem advancement strategy, faces potential impacts from this trend, attention is focused on the situation, while various countries around the world are also rolling out their countermeasures. Our government is accelerating efforts to advance the semiconductor ecosystem. Through the 'K-Semiconductor Strategy Report,' the government envisions a leap to becoming a comprehensive semiconductor powerhouse by 2030 and plans to complete semiconductor localization through massive investments and tax benefits. Having achieved K-quarantine through COVID-19, South Korea is expected to proudly demonstrate the success of K-Semiconductor in the global semiconductor supremacy competition. /Daejeon=Photo by Kang Jin-hyung aymsdream@

[Sejong=Asia Economy Reporter Kwon Haeyoung] As the economy recovers from the slump caused by COVID-19, semiconductor exports last month re-entered the $10 billion range for the first time in two and a half years. With double-digit growth in exports of key items such as semiconductors, displays, and mobile phones for two consecutive months, South Korea's information and communication technology (ICT) exports reached $17.73 billion last month, marking the second-highest export performance for May on record.

The Ministry of Trade, Industry and Energy announced on the 14th that ICT exports in May this year amounted to $17.73 billion, while imports were $10.51 billion. This is the second-largest May export figure on record, following $18.5 billion in May 2018. Compared to the same month last year, it increased by 27.4%, maintaining a growth trend for 12 consecutive months. The trade balance was preliminarily estimated at a surplus of $7.22 billion.

By major item, semiconductor exports last month reached $10.11 billion, up 24% from the same month last year. Due to continuous demand growth and price increases, memory semiconductors and system semiconductors increased by 24% and 55.7%, respectively, re-entering the $10 billion range for the first time in 30 months since November 2018.

Display exports increased by 38.7% to $1.78 billion, driven by expanded exports of organic light-emitting diode (OLED) and liquid crystal display (LCD) related components due to growing mobile demand. Mobile phone exports increased for the seventh consecutive month, with finished products and parts rising by 20.8% and 62.9%, respectively. Computers and peripherals also increased by 14.2% and 9.1%, respectively, marking three consecutive months of export growth.

By region, exports to China amounted to $8.66 billion, up 19.3% year-on-year. Exports to Vietnam ($2.38 billion), the United States ($2.28 billion), and the European Union ($1.03 billion) increased by 39.3%, 30.5%, and 34.4%, respectively. Exports to Japan ($330 million) also rose by 12.9%.

Last month's trade balance was preliminarily estimated at a surplus of $7.22 billion. By item, semiconductors ($5.39 billion), displays ($1.49 billion), and mobile phones ($420 million) recorded surpluses. The largest surplus country, China (including Hong Kong), maintained a surplus of $4.96 billion, followed by Vietnam with $1.51 billion, the United States with $1.52 billion, and the European Union with $480 million. On the other hand, the trade deficit with Japan was recorded at $510 million.

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