South Korea's ICT Exports Surpass $20 Billion For Fourth Consecutive Month Amid Record Semiconductor Sales

In November, South Korea's information and communication technology (ICT) sector saw exports surpass $20 billion for the fourth month in a row. Despite this achievement, growth showed signs of slowing due to weaker performance in displays and smartphones. The Ministry of Science and ICT reported that last month's export value reached $20.5 billion, maintaining the $20 billion mark since August.

The semiconductor industry continued to be a major contributor to export growth. Memory semiconductor exports rose by 52% to $7.96 billion, driven by increased investment in AI servers requiring high-bandwidth memory (HBM). System semiconductor exports also grew slightly by 1.9%, reaching $3.96 billion.

The cumulative export value of semiconductors until November hit an all-time high of $127.5 billion, maintaining double-digit growth for 13 months straight with an overall increase rate of 30.3%. This consistent growth highlights the sector's importance in South Korea's economy.

Exports of computers and peripheral devices saw a significant rise, increasing by 98.6% to $1.15 billion. This surge was largely due to higher demand for solid-state drives (SSD) used in data center servers, reflecting the growing need for advanced storage solutions.

However, not all sectors performed well. Display exports fell by 20.1% to $1.67 billion, while mobile phone exports decreased by 6.2% to $1.45 billion. These declines were attributed to weak demand for components and other market factors affecting these industries.

Telecommunications Equipment Decline

The telecommunications equipment sector also experienced a downturn, with exports dropping by 3.8% to $200 million. This decline adds to the challenges faced by the ICT industry amid fluctuating global demand.

The year-on-year increase rate for overall ICT exports was limited to 14.8%, a decrease from previous months' higher rates ranging from 30% in April-July to around 20% from August-October before falling further last month.

Despite these mixed results, the cumulative export value until November reached $212.4 billion, marking a 26.1% increase compared to the same period last year.

This data underscores the ongoing significance of semiconductors and related technologies in driving South Korea's export economy while highlighting areas needing improvement like displays and mobile phones.

With inputs from WAM