Korea's ICT Exports Show Sustained Growth for Two Consecutive Months – BusinessKorea
The Information and Communication Technology (ICT) industry has recorded a growth rate in the 30% range for the second consecutive month, thanks to double-digit increases across major items such as semiconductors, displays, mobile phones, and computers and peripherals.
The Ministry of Trade, Industry and Energy announced on June 16 that ICT exports in May increased by 31.8% compared to the same period last year. In April as well, ICT exports saw a rise of 33.8%. The exports for May amounted to $19.05 billion, with imports totaling $11.48 billion, resulting in a trade surplus of $7.57 billion.
By item, semiconductor exports increased by 52.4% year-over-year to $11.39 billion. The growth in the artificial intelligence market and the recovery in the IT device market contributed to an expanded demand for semiconductors. Notably, memory products saw a significant increase of 101% due to price hikes and a rise in demand for high-added value items such as HBM. Overall, semiconductor exports have continued to grow in double digits for seven consecutive months.
Display exports increased by 15.3% compared to last year, totaling $1.85 billion. The recovery in demand for IT devices such as TVs and PCs has led to simultaneous increases in exports of both OLED and LCD displays. Total display exports have maintained a double-digit growth for four consecutive months, with increases of 18.6% in February, 12.9% in March, and 15.2% in April.
Mobile phone exports in May reached $1.02 billion, a 10.8% increase from last year. The South Korean mobile phone ecosystem is more oriented towards exporting parts to overseas factories in countries like China and Vietnam, rather than finished products. Exports of parts increased by 15.3%, amounting to $700 million, while exports of finished products rose by 2.2% to $330 million.
Exports of computers and peripherals showed a 42.8% increase to $1.18 billion, driven by increased investments in servers and data centers, and a rise in demand for PCs and other devices. Notably, exports of peripherals such as SSDs rose by 46.8%, maintaining a growth trend in the category for five consecutive months. On the other hand, exports of telecommunication equipment decreased by 10.7% to $180 million compared to last year.
Last month, small and medium-sized enterprises (SMEs) in the ICT sector exported $5.05 billion, marking an 8.9% increase year-over-year. All items, including semiconductors (12.0%), mobile phones (23.8%), displays (10.5%), and computers and peripherals (9.1%), showed an upward trend.
Regionally, China (including Hong Kong) was the largest recipient of ICT exports, totaling $8.13 billion, followed by Vietnam at $3.07 billion. Exports to these two countries increased by over 30% compared to the previous year. Exports to the U.S. and the European Union were also up by over 20%, totaling $2.14 billion and $1.09 billion respectively.
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