Semiconductor 'Supercycle' Drives New Year Exports to Record January High

Exports Rise 14.9% from January 1 to 20
Semiconductors Surge Over 70%, Approaching 30% Share of Total Exports

Thanks to the semiconductor "supercycle" (super boom), exports in the new year are showing an increase of nearly 15%. As semiconductor exports have grown by more than 70% compared to last year, semiconductors now account for almost 30% of total exports.

According to the Korea Customs Service on January 24, export volume from January 1 to 20 reached $36.4 billion, a 14.9% increase compared to the same period last year. This figure surpasses the previous record for the period, which was $34.6 billion from January 1 to 20, 2022.

The number of working days was 14.5, the same as the previous year, so the average daily export value, adjusted for working days, also increased by 14.9% to $2.51 billion.

The increase in exports was led by semiconductors. Compared to the same period last year, exports of semiconductors (70.2%), petroleum products (17.6%), and wireless communication devices (47.6%) increased. Meanwhile, exports of passenger cars (-10.8%) and auto parts (-11.8%) decreased, resulting in the share of semiconductor exports rising by 9.6 percentage points to 29.5%. By country, exports to China (30.2%), the United States (19.3%), and Vietnam (25.3%) increased, while exports to the European Union (EU, -14.8%) and Japan (-13.3%) decreased.

Imports from January 1 to 20 this month totaled $37 billion, a 4.2% increase compared to the same period last year. Imports of semiconductors (13.1%) and semiconductor manufacturing equipment (42.3%) increased, while imports of crude oil (-10.7%), gas (-23.1%), and machinery (-0.7%) decreased. Imports from China (3.1%), the United States (5.3%), the EU (26.6%), and Australia (15.9%) increased, while imports from Japan (-0.1%) and Saudi Arabia (-25.1%) decreased. As imports exceeded exports, the trade balance for January 1 to 20 recorded a deficit of $600 million.

The government's export target for this year is $700 billion. If achieved, it will mark the second consecutive year of surpassing $700 billion, following last year's $709.4 billion. An official from the Ministry of Trade, Industry and Energy stated, "While the strong performance of semiconductors is a positive factor, there are persistent trade risks such as the full implementation of the EU Carbon Border Adjustment Mechanism (CBAM) and the introduction of new steel import regulations this year," adding, "We will focus all our efforts on achieving $700 billion in exports for the second consecutive year."