Korea’s chip exports to grow 21% this year: KITA

Jeong Marn-Ki, executive vice chairman of KITA, gives a briefing during a press conference in Seoul on Tuesday. [Photo by Yonhap]

South Korea’s chip exports are expected to grow by more than 21 percent this year on the back of improved demand for information technology (IT) products, according to the Korea International Trade Association.

“The export growth in semiconductors is anticipated to rebound, driven by increased demand for leading IT products such as smartphones, PCs, and solid state drives (SSDs),” said Jeong Marn-Ki, executive vice chairman of KITA, during a press conference in Seoul on Tuesday.

Global market research firm Gartner has predicted a 18.2 percent on-year growth in the global semiconductor market, reaching $624.4 billion this year.

In particular, memory semiconductors, where Korean companies hold a strong position, are expected to surge by 73.2 percent on-year to $156.3 billion.

The Institute for International Trade under KITA also foresees a significant increase in semiconductor exports as the largest among major items this year. Semiconductor exports are expected to grow by 21.2 percent or $20.9 billion this year.

Other IT items, including wireless communication devices (7.7 percent) and displays (5.9 percent), are also anticipated to see high growth.

This is attributed to the expanding demand for smartphones and the creation of new markets for organic light-emitting diodes (OLEDs) in sectors such as automobiles.

KITA also emphasized in a report that with the increasing likelihood of Donald Trump returning to office in the U.S. presidential election, Korea’s negotiating capabilities in trade with the U.S. will become crucial.

KITA suggests that if Trump were to resume the presidency, the U.S. will become more America-first and deepen its economic separation from China.