This Year's Export Target: $700 Billion... The Core is Semiconductors

Export Target Raised by 10.6% Year-on-Year
Exports from 1st to 10th Up 11.2%

Exports increased by more than 11% until the 10th of this month. This marks a favorable trend toward achieving the government's target of $700 billion for this year. Semiconductor and petroleum product exports led the growth, increasing by more than 20% this month as well.

According to the Korea Customs Service on the 14th, export value from the 1st to the 10th of this month was $15.4 billion, up 11.2% ($1.55 billion) compared to the same period last year.

Among the top 10 major export items, eight items increased except for wireless communication devices (-22.0%) and precision instruments (-1.8%). Semiconductors and petroleum products rose by 25.6% and 20.1%, respectively, driving the export growth. Additionally, exports of passenger cars (2.2%), steel products (5.9%), ships (182.9%), and computer peripherals (15.8%) also increased.

This Year's Export Target: $700 Billion... The Core is Semiconductors

Researchers are conducting semiconductor material and component development research in the 12-inch semiconductor testbed cleanroom at the Daejeon Nano Comprehensive Technology Institute. It is projected that the global semiconductor shortage will continue until the middle of next year. As the local industry in Gunnae, which is implementing a semiconductor ecosystem advancement strategy, faces potential impacts from this trend, attention is focused on the situation, while various countries around the world are also rolling out their countermeasures. Our government is accelerating the advancement of the semiconductor ecosystem. Through the 'K-Semiconductor Strategy Report,' the government envisions a leap to becoming a comprehensive semiconductor powerhouse by 2030, aiming to complete semiconductor localization through massive investments and tax benefits. Having achieved K-quarantine through COVID-19, South Korea is expected to proudly advance K-semiconductors in the global semiconductor hegemony competition. /Daejeon=Photo by Kang Jin-hyung aymsdream@

By country, exports to China (10.1%), the United States (15.3%), and the European Union (EU, 16.2%) grew, with these countries accounting for 48.8% of total exports. Conversely, exports to Vietnam (-4.6%) and Malaysia (-27.1%) declined.

On the 11th, Minister An Deok-geun of the Ministry of Trade, Industry and Energy visited a semiconductor site and reiterated the importance of semiconductor exports. At the event, Minister An said, "Last year, despite difficult conditions such as the global economic downturn and semiconductor industry recession, semiconductor exports turned positive, laying the foundation for a leap forward in our exports. This year, with the recovery of the information technology (IT) industry and rising memory semiconductor prices, we are entering a semiconductor upcycle, and 2024 is expected to be the year of semiconductors."

Imports until the 10th of this month amounted to $18.5 billion, down 8.3% ($1.67 billion) compared to the same period last year. Imports of crude oil (19.0%) and petroleum products (11.8%) increased, while semiconductors (-3.4%), gas (-45.0%), and machinery (-3.2%) decreased. Energy imports, including crude oil, gas, and coal, also fell by 14.1%. By country, imports from Vietnam (10.9%) and Malaysia (12.6%) increased, whereas those from China (-9.9%), the United States (-19.1%), and the EU (-12.0%) decreased.

The trade balance recorded a deficit of $3 billion. The Ministry of Trade, Industry and Energy noted that imports tend to be relatively high at the beginning of the year and expects the trade balance to improve toward the end of the month.

To achieve this year's export target of $700 billion, the government plans to supply a record-high trade finance of 355 trillion won. It will also strengthen customized support for export companies by establishing a preferential guarantee worth 2 trillion won and concentrate marketing support budgets, such as for overseas exhibitions, to about two-thirds of the total in the first half of the year.