ICT Exports Decline for 7 Consecutive Months... Only Mobile Phones 'Hold Up'

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] Last month, exports in the information and communication technology (ICT) sector continued to decline for the seventh consecutive month, causing the trade surplus to fall below 1 billion dollars.

The Ministry of Science and ICT announced on the 14th that ICT exports in January this year were tentatively estimated at 13.1 billion dollars. This is a 33.2% decrease compared to the same month last year, marking the seventh consecutive month of decline.

Imports decreased by 1.1% to 12.21 billion dollars. The trade balance recorded a surplus of 890 million dollars.

Mobile phones recorded export earnings of 1.41 billion dollars, a 24.4% increase compared to the same month last year. Among the major export items, mobile phones were the only category to show an increase.

This was largely due to the normalization of major overseas production plants ahead of the launch of Samsung Electronics' Galaxy S23 this month. Finished product exports increased by 174% to 340 million dollars, and parts exports rose by 5.9% to 1.07 billion dollars.

Semiconductor exports amounted to 2.9 billion dollars, down 25% from the same month last year. Memory semiconductors saw an expanded decline in exports due to inventory accumulation and continued price drops. Export value fell 57.3% to 2.77 billion dollars.

Display exports decreased by 37.7% to 1.46 billion dollars. Organic light-emitting diode (OLED) exports were 960 million dollars, down 31.3% year-on-year due to weakened demand in downstream industries.

Liquid crystal display (LCD) exports fell 44.5% to 300 million dollars, affected by reduced domestic production and intensified price competition leading to price declines.

Computer and peripheral exports dropped 58.7% to 630 million dollars. The global economic slowdown reduced demand for IT devices, shrinking exports of electronic components and auxiliary storage devices for data centers and servers.

Exports to major regions also declined. China (including Hong Kong), Vietnam, the United States, the European Union, and Japan were affected by weakened demand in downstream industries due to global economic growth slowdown and reduced IT device production.