ICT Export Surplus in October Despite Four Consecutive Months of Decline

[Image source=Reuters Yonhap News]

[Asia Economy Sejong=Reporter Dongwoo Lee] Last month, South Korea's exports in the information and communication technology (ICT) sector recorded a surplus, but continued a decline for the fourth consecutive month compared to the previous year.

The Ministry of Trade, Industry and Energy announced on the 14th that last month's ICT export value was $17.87 billion. Imports amounted to $13.76 billion, resulting in a provisional trade surplus of $4.11 billion.

Exports decreased by 10.3% compared to the same month last year ($19.91 billion) due to weakened demand for IT devices and reduced production. The average daily export value was $830 million, down 12.4% from the same month last year ($950 million).

Semiconductors, displays, and computers & peripherals declined, but mobile phone exports continued to grow, centered on high value-added components. Among the four major items, mobile phones increased by 13.0%. Semiconductors (-16.2%), displays (-9.6%), and computers & peripherals (-30.9%) decreased.

Semiconductor systems saw double-digit growth for 19 consecutive months, but overall semiconductor exports fell 16.2% year-on-year to $9.41 billion due to continued price declines in memory chips.

In particular, memory semiconductors have decreased for four consecutive months since June this year due to inventory accumulation caused by reduced demand in downstream industries and continued decline in fixed transaction prices. However, system semiconductors have maintained growth due to ongoing digital transformation demand, exceeding $4 billion for five consecutive months and recording double-digit growth for 19 consecutive months. By region, due to intensified global inflation and continued economic slowdown, China including Hong Kong (-16.0%), Vietnam (-1.3%), the United States (-13.9%), the European Union (-4.6%), and Japan (-5.3%) all saw declines.

ICT imports ($13.76 billion) increased by 13.6% compared to the same month last year. Last month's trade surplus was $4.11 billion, continuing the overall export deficit (-$6.7 billion) caused by increased global uncertainties.

Semiconductors (up 21.8%), mobile phones (up 7.5%), and computers & peripherals (up 7.4%) increased, while displays decreased by 16.3%. Imports from Taiwan (up 11.2%), Japan (up 21.8%), and the United States (up 1.8%) increased, whereas China (-3.2%) and Vietnam (-4.5%) decreased.

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