ICT Exports Increased Last Year Despite COVID-19... "Growth Expected This Year Too"

Semiconductors, Computers & Peripherals Up 3.8% Year-on-Year
7 Consecutive Months of Growth Since June Last Year... "Driving Economic Recovery"

[Asia Economy Reporter Moon Chae-seok] South Korea's information and communication technology (ICT) exports demonstrated resilience by recording positive growth despite the COVID-19 pandemic. This year, the increase is expected to be driven mainly by high value-added products such as semiconductors and organic light-emitting diode (OLED) panels.

Source: Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy announced on the 18th that last year's ICT exports were tentatively tallied at $183.6 billion, imports at $112.6 billion, resulting in a trade surplus of $71 billion. Exports ranked third following the record highs during the semiconductor super boom in 2018 with $220.3 billion and 2017 with $197.6 billion.

Due to the global economic slowdown, exports decreased by 2.8% in the first half compared to the previous year, but increased for seven consecutive months starting in June, growing 10.2% in the second half. Semiconductors rose 5.4% to $100.25 billion, and computers and peripherals surged 53.1% to $13.91 billion.

Thanks to this, exports to major markets increased: China (including Hong Kong) $86.88 billion (0.1% increase), Vietnam $29.78 billion (9.6%), the United States $22.13 billion (20.4%), and the European Union (EU) $11.25 billion (4.8%).

Source: Ministry of Trade, Industry and Energy

Looking in detail, semiconductor exports recorded $100.3 billion, the second highest ever following $128.2 billion in 2018. In particular, system semiconductors set a new record at $30.3 billion, driven by increased exports centered on semiconductor foundry (contract manufacturing).

Display exports declined by 16.1% in the first half but increased by 4.5% in the second half. This was thanks to high value-added organic light-emitting diode (OLED) exports reaching $10.9 billion, surpassing the previous record of $10.3 billion in 2019.

Source: Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy expects ICT exports to continue growing this year. As the global economy recovers from the impact of COVID-19 and 5G services expand, demand for semiconductors and OLED panels is anticipated to increase.

However, the ministry did not specify exact figures for this year’s ICT export volume.

An official from the ministry explained, "Semiconductors, the largest export item, are expected to lead ICT export growth again this year due to expanding demand from industries such as 5G services and artificial intelligence."