What Contributed to the 14.5% Surge in South Korea's ICT Exports?
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Synopsis
South Korea's ICT exports have skyrocketed by 14.5% in July, primarily due to exceptional chip performance. Discover how the semiconductor boom is reshaping the nation's economy amidst challenges in other sectors.
Key Takeaways
- ICT exports rose by 14.5% in July.
- Record semiconductor shipments were a key factor.
- Imports increased by 9.8%, leading to a trade surplus.
- Exports to the U.S. continue to grow.
- Challenges remain in other product categories.
Seoul, Aug 13 (NationPress) Exports of information and communication technology (ICT) products from South Korea saw a remarkable rise of 14.5 percent year-over-year in July, driven by exceptional chip shipments, according to data released on Wednesday.
The total value of outbound shipments for ICT products reached US$22.19 billion last month, a significant increase from $19.38 billion in the same month last year, as reported by the Ministry of Science and ICT. This marks the highest export volume recorded for any July.
Meanwhile, imports also rose by 9.8 percent to $13.32 billion, resulting in a trade surplus of $8.87 billion in this sector, as per Yonhap news agency.
The science ministry attributed the notable rise in exports primarily to record shipments of semiconductors, which surged by 31.2 percent year-on-year to reach $14.72 billion, propelled by increasing memory chip prices and rising investments in artificial intelligence servers by global corporations.
In contrast, exports of display products fell by 8.9 percent to $1.76 billion amid an industry-wide decline.
Shipments of mobile devices also experienced a downturn, dropping 21.7 percent to $960 million, while exports of computers and accessories decreased by 17.1 percent to $1.09 billion.
Looking at export destinations, shipments to the United States rose by 11.9 percent to $2.71 billion, largely driven by semiconductors and mobile devices, marking a continuous gain for 21 months.
On the other hand, shipments to China decreased by 5.6 percent to $7.47 billion, due to diminished demand for chips, displays, and mobile devices.
Exports to the European Union and Japan saw increases of 18 percent and 23.9 percent, respectively, according to the data.
It is worth noting that South Korea's exports had previously experienced a decline of 4.3 percent year-on-year in the first ten days of this month, partly attributed to sluggish shipments to the United States amid rising tariffs.
Outbound shipments totaled US$14.7 billion in the period from August 1-10, compared to $15.4 billion recorded in the same period last year, as reported by the Korea Customs Service.
Point of View
I view this significant increase in South Korea's ICT exports as a testament to the country's technological prowess. The growth, particularly in semiconductors, highlights the strategic investments being made in the tech sector. However, the downturn in other categories serves as a reminder of the volatile nature of global demand.
NationPress
19/08/2025
Frequently Asked Questions
What caused the surge in South Korea's ICT exports?
The surge was largely driven by record shipments of semiconductors, which increased by 31.2% year-on-year, buoyed by rising memory chip prices and investments in AI.
How much did South Korea's ICT exports increase?
South Korea's ICT exports rose by 14.5% year-on-year in July.
What sectors saw a decline in exports?
Exports of display products, mobile devices, and computers saw declines of 8.9%, 21.7%, and 17.1% respectively.
Which countries were significant markets for South Korean exports?
The United States, China, the European Union, and Japan were significant markets, with the U.S. seeing an 11.9% increase in exports.
What is the outlook for South Korean exports?
While the semiconductor sector shows strong growth, challenges remain due to declining demand in other areas and potential trade issues.
