ICT exports sink 20% in 2019 on trade row, chip slump

Published : Jan 20, 2020 - 11:09 Updated : Jan 20, 2020 - 11:29

(Yonhap)

South Korea's exports of information and communications technology products nosedived nearly 20 percent on-year in 2019, data showed Monday, due mainly to a lengthy trade row between the United States and China and a drop in chip prices.

Outbound ICT shipments totaled $176.9 billion last year, falling sharply from $220.4 billion in 2018, according to the Ministry of Trade, Industry and Energy. The decrease was also caused by a base effect, as the country posted record-high exports in 2018.

ICT exports fell for a whopping 14th straight month in December, surrendering 9.5 percent from a year earlier to reach $14.4 billion, the ministry data added.

For the whole of 2019, South Korea's outbound shipments of chips, its mainstay export product, plunged 25.7 percent to $95.1 billion, due to falling global memory chip prices.

Exports of displays lost 21.3 percent on-year to reach $21.8 billion, as South Korean products lost their price competitiveness overseas in the face of rising competition from Chinese rivals.

Overseas sales of mobile devices surrendered 17.8 percent to hit $12 billion, according to the data.

By region, ICT exports to China, including Hong Kong, moved down 27.3 percent on-year to $86.7 billion. Shipments to the United States edged down 2.6 percent to $27.1 billion.

On the other hand, South Korea imported $108.4 billion worth of ICT products in 2019, resulting in a trade surplus of $68.5 billion in the sector.

This year, the ministry said it expects ICT exports to rebound in line with the recovery of demand for memory chips and OLED panels.

Sales of chips are expected to rise throughout 2020 on the back of rising demand from data centers and smartphone manufacturers.

Chips accounted for roughly 17 percent of South Korea's combined exports last year.

South Korea's overall exports plunged 10.3 percent on-year in 2019, falling for 13 consecutive months as of December. South Korea said its exports are expected to rebound 3 percent in 2020. (Yonhap)