Korea's ICT exports drop 13.4 percent in September

Korea's September ICT exports dropped by 13.4% YoY due to weak semiconductor exports. Outbound shipments of various ICT products decreased, except display products.

Nano-technology is applied on the semiconductor [NEWS1]

Korea’s exports of information and communication technology (ICT) products in September posted a 13.4 percent on-year drop as the export of semiconductors remains weak.

The Ministry of Science and ICT on Monday announced that the outbound export in September accounted for $18.06 billion, extending the losing streak to 15 months since last July. The rate of export decline was reported to be the lowest level in the year.

Outbound shipments of semiconductors, mobile phones, computers and peripheral devices and telecommunication equipment all decreased, except display products.

Despite the sales figure of the semiconductor sector showing a double-digit decline, the sector garnered the highest sales figure of the year, amounting to $9.99 billion. Specifically, the exported value of memory chips and system chips came in at $5.43 billion and $4.16 billion, respectively.

The ministry said the export market is showing recovery at a slow pace after hitting the lowest point in the first quarter of this year because of the weak prices of memory chips, a core ICT export product.

Mobile exports were not an exception in the globally stagnated mobile market. It experienced a 5.2 percent decline on-year to $1.37 billion, marking the eighth consecutive month of decline in exports.

Driven by the increasing demand for mobile OLED products, the display sector showed an increase in exports, reaching sales of $2 billion.

By destination, shipment to China, Korea’s largest trading partner, fell 22 percent and the United States fell 18.7 percent.

Exports to Vietnam went up 1.9 percent.

Imports of ICT products to Korea are recorded to be $10.76 billion, having fallen 16.8 percent compared to the same month last year. The weakened domestic demand for core equipment including semiconductors contributed to the decrement in imports.

The ICT product's trade balance for September recorded a surplus of $ 7.3 billion, according to the ministry.

BY BAE JAE-SUNG, LEE SOO-JUNG [lee.soojung1@joongang.co.kr]