What Factors Contributed to South Korea's 5.8% Rise in ICT Exports in H1 2025?
Click to start listening
Synopsis
South Korea's ICT exports surged by 5.8% in the first half of 2025, a significant boost driven by strong semiconductor demand. As global reliance on data centers grows, the nation's economy sees a promising trade surplus. Discover how this trend is shaping the future of South Korea's tech industry.
Key Takeaways
- ICT exports increased by 5.8% in H1 2025.
- Strong demand for semiconductors drove growth.
- Trade surplus in the ICT sector reached $44.24 billion.
- Exports to the United States rose by 14.5%.
- Display panel exports fell by 13.9%.
Seoul, July 14 (NationPress) South Korea witnessed a 5.8 percent increase in its information and communication technology (ICT) exports during the first half of the year compared to the previous year, fueled by strong semiconductor sales amid escalating demand for data centres, according to government data released on Monday.
During the January to June period, outbound shipments of ICT products reached US$115.16 billion, a rise from $108.83 billion a year earlier, as reported by the Ministry of Science and ICT, according to Yonhap news agency.
ICT imports also saw a 5 percent increase year-on-year, reaching $70.92 billion in the first six months, leading to a trade surplus of $44.24 billion in this sector.
Breaking it down by product, semiconductor exports surged 11.4 percent year-on-year to $73.31 billion, driven by the high demand for artificial intelligence (AI) chips and elevated chip prices.
Moreover, exports of computers and communications equipment increased by 10.8 percent to $6.64 billion, while the shipment of mobile phones rose 9.1 percent to $6.08 billion, as indicated by the data.
In contrast, exports of display panels fell by 13.9 percent to $8.7 billion due to growing uncertainties in global consumer markets and inventory adjustments in related sectors.
Regionally, combined shipments to China and Hong Kong declined by 11.5 percent year-on-year to $41.98 billion, reflecting weaker semiconductor demand.
On a positive note, exports to the United States rose by 14.5 percent to $14.42 billion, while shipments to the European Union decreased by 2.7 percent to $5.8 billion.
Shipments to Vietnam grew by 10 percent to $19.06 billion, and exports to Japan increased by 5.7 percent to $1.95 billion.
In the stock market, South Korean stocks experienced slight gains on Monday morning, buoyed by increases in financial and retail shares. The benchmark Korea Composite Stock Price Index (KOSPI) rose by 4.73 points, or 0.15 percent, to 3,180.50 as of 11:20 a.m.
Insurance stocks led the market surge, with industry leader Samsung Fire & Marine Insurance soaring by 9.51 percent and Hyundai Marine & Fire Insurance climbing by 6.35 percent.
Major retailers such as Lotte Shopping and Shinsegae observed gains of 2.3 percent and 5.87 percent, respectively.
Leading cosmetics company AmorePacific saw a rise of 4.37 percent, while LG H&H advanced by 2.88 percent.
However, Samsung Electronics experienced a dip of 0.96 percent, and LG Energy Solution fell by 1.87 percent.
Point of View
I emphasize that South Korea's rising ICT exports highlight the nation's technological prowess and adaptability in a rapidly evolving global market. The increase in semiconductor sales showcases the strategic importance of this sector, reinforcing South Korea's role as a leader in innovation. It is crucial for the nation to continue fostering advancements to sustain this momentum.
NationPress
14/07/2025
Frequently Asked Questions
What drove the increase in ICT exports?
The increase in ICT exports was primarily driven by robust semiconductor sales, fueled by growing demand for data centers and artificial intelligence chips.
How much did South Korea's ICT exports rise?
South Korea's ICT exports rose by 5.8% in the first half of 2025, reaching US$115.16 billion.
What was the trade surplus in the ICT sector?
The trade surplus in the ICT sector amounted to US$44.24 billion in the first half of 2025.
Which products saw significant export increases?
Semiconductor exports increased by 11.4%, while exports of computers and communications equipment grew by 10.8%.
What regions experienced changes in export demand?
Exports to China and Hong Kong dropped by 11.5%, while exports to the United States rose by 14.5%.
