Ministry of Trade Industry and Energy of Repu : ICT exports hit record high in 2017

The Ministry of Trade, Industry and Energy announced on January 16 that exports of information and communication technology (ICT) products surged 21.6 percent to a record USD 197.6 billion in 2017 from a year ago, surpassing $190 billion for the first time.

In 2017, exports of ICT products, including semiconductors, mobile phones, computers and display panels, recorded a double-digit growth for the first time in seven years since 2010. Exports also achieved a monthly high for each month from February to December.

Imports rose 13.6 percent to $102.1 billion. The trade balance for this sector was positive with a surplus of $95.6 billion, up from $72.7 billion in 2016, accounting for most of Korea's total trade surplus of $95.8 billion.

The double-digit growth in ICT exports was led by all-time high overseas sales of semiconductors and strong performances of other segments with technologically advanced Korean products such as displays and secondary storage for computers.

Outbound shipments of semiconductors increased 60.2 percent to a record $99.7 billion compared to 2016, which makes semiconductors the first single export item to exceed $90 billion. Exports of memory semiconductors including dynamic random-access memory chips and NAND flash memory products soared 90.7 percent to an all-time high of $67.2 billion, and those of system semiconductors jumped 23.9 percent to a record $25.4 billion.

Exports of display panels rose 7.8 percent to $30.3 billion. While outbound shipments of liquid crystal display (LCD) panels decreased by 4.9 percent to $17.3 billion due to intensifying competition, those of organic light-emitting diode (OLED) panels surged 34.4 percent to $9.2 billion because of growing demand.

Outbound shipments of computers and peripheral devices expanded 10 percent to $9.6 billion, led by a steep growth in overseas sales of solid-state drives (SSDs). Exports of SSDs soared 45.6 percent to a record high of $5.5 billion.

By country, China remained the biggest buyer of Korean ICT products. Exports to China reached a record high of $104.4 billion, rising 22.2 percent thanks to strong demand for semiconductors. Shipments to Vietnam soared 60.2 percent to $25.8 billion while exports to the United States increased by 3.7 percent to $18.2 billion.

Imports of ICT products also expanded 13.6 percent to $102.1 billion with inbound shipments of semiconductors rising 13.1 percent to $41.4 billion and display panels increasing 26.5 percent to $6.1 billion. Purchases of mobile phones and computers and peripheral devices climbed up 10.9 percent to $12.2 billion and 19.4 percent to $11.9 billion, respectively.

The Ministry forecasts ICT exports would keep expanding this year due to the strong global economic recovery, although uncertainties such as fiscal and regulatory policy changes in the U.S. and negotiations over Britain's exit from the European Union as well as a strong Korean won remain concerns. The export growth is expected to be driven by robust demand for memory and system semiconductors and OLED panels.

*short version