-
Trade/Investment
South Korea’s Information and Communications Technology (ICT) Industry Records Highest Monthly Exports and Trade Balance in April
South Korea’s exports of information and communications technology (ICT) products rose 4.5 percent in April from a year earlier, recording USD 14.76 billion. Despite external challenges including low consumption by emerging economies and low exchange rates, shipments to major trade partners such as China (including Hong Kong), the US and Japan have grown. By region, China (including Hong Kong) was USD 7.36 billion, up 5.5%; the US was USD 1.73 billion, up 12.9% and Japan was USD 0.57 billion, up 32.1%. By products, semiconductors was USD 4.84 billion, up 12.4%; mobile phones was USD 2.45 billion, up 11.8%; D-TV was USD 0.65 billion, up 14.7%. Most notably, system memory*, which has seen a low export trend since the second half of last year, showed export growth for the first time in 2014. * Export growth rate (%): December 2013, up 6.7 → January 2014, up 18.6 → February 2014, up 13.7 → March 2014, up 6.0 → April 2014, up 4.5 Prompted by the recent ICT export growth, monthly exports for April and accumulated exports for April recorded historic highs of USD 14.76 billion and USD 55.91 billion, respectively. Imports of semiconductors (USD 2.96 billion, up 0.7%), PCs and peripherals (USD 0.82 billion, up 8.7%) and display panels (USD 0.47 billion, up 2.4%) increased, while imports from Japan (USD 0.92 billion, down 15.4%) the US (0.65 billion, down 5.0%) and the Middle East (USD 0.04 billion, down 14.9%) declined. - Imports of parts for connectivity (PCB, etc., USD 0.41 billion, down 9.0%) and D-TV (USD 0.03 billion, down 0.1%) declined. - Imports from China (including Hong Kong, USD 2.53 billion, up 9.1%), ASEAN (USD 1.16 billion, up 13.2%) and EU (USD 0.52 billion, up 1.7%) grew date2014-05-14
-
Trade/Investment
Export & Import Trends for April 2014
* Monthly export growth rate (year-on-year, %): (January 2014) +0.2 → (February) 1.4 → (March) 5.1 → (April) 9.0 * The highest monthly exports: USD 50.48 billion recorded in October 2013 ① Rapid export growth to the US thanks to the economic recovery of the US, and robust exports to ASEAN countries ② Early customs clearance of export businesses due to the long holiday in early May (1st through 6th) ③ Base effect caused by poor export performance in April 2013 Deputy Director Song Jeong-hun, Export & Import Division (044-203-4042) date2014-05-02
-
Trade/Investment
Korea’s 2014 ICT product exports exceed USD 40Billion
Last March, Korea’s ICT product exports reached USD 14.98billion, up by 8.9% compared to the same month in the previous year. In the wake of expanded exports to major trading countries such as China (Hong Kong included) • the U.S. and remarkable performance of export by items including mobile phones • semiconductors • D-TVs, the export growth rate continues to be expanded. * By region: USD 7.39 billion (China), 9.9%↑, USD 2.08 billion (ASEAN), 11.0%↑, USD 1.47 billion (US), 15.1%↑, USD 840 million (Central America) 10.2%↑ * By item: USD 5.24 billion (Semiconductors), 14%↑, USD 2.4 billion, 30.3%↑(mobile phones), USD 630million (D-TV), 23.8%↑ * By monthly export growth rate (over the same month in the previous year): (’14.January) 1.6 → (February) 8.6 → (March) 8.9 In conclusion, exports in the first quarter were recorded as USD 41.2 billion while trade balance as USD 20.5, reaching the largest achievement (exports and trade balance) in history. Last March, ICT trade balances were in the black, recording a surplus of USD 7.55 billion which was a significant contribution to the nation’s overall trade surplus. By item, semiconductors (USD 3.05 billion, up 3.2%), Display panels (USD 490 million, up 10.3%), D-TV (USD 30 million, up 30.6%) were increased while parts for connection (PCB, USD 410 million, up 6.1%), accessories (USD 330 million, up 2.7%) are on the decline. date2014-04-11
-
Trade/Investment
Export & Import Trends for March 2014
Thanks to robust exports to advanced nations, the monthly exports for March 2014 were the second highest in Korea’s history, with increasingly higher export growth witnessed in 2014. - Highest monthly exports: USD 50.48 billion in October 2013 - Export growth rate (year-on-year, %): (January 2014) -0.2 → (February) 1.5 → (March) 5.2 More specifically, exports of IT products rose, particularly wireless devices thanks to the growth of the Chinese LTE market and semiconductors as a result of DRAM price hikes, and exports of automobiles and ships grew as well. Meanwhile, exports of LCDs decreased as a result of a drop in panel prices, while petroleum products suffered due to a decrease in demand from major export partners and petrochemical products declined as a result of lowered unit prices of exported goods due to NAPHTHA price declines. - Export growth rate by item (%): Wireless devices 32.1, ships 18.7, automobiles 15.9, semiconductors 14.0, steel 6.7, general machinery -0.1, petroleum products -3.5, petrochemical products -5.0 and LCDs -10.4 Exports to the US, which have shown a temporary decline due to the cold weather and other factors, showed double-digit growth, fueled by robust exports of consumer products (automobiles, wireless devices, etc.) and machinery. In addition, exports to the EU have shown double-digit growth for three consecutive months thanks to robust exports of IT products and petroleum products, while the exports to ASEAN and China have increased thanks to export growth in the area of capital goods. Exports to Japan, prompted by export growth of steel and general machinery and base effects, showed growth for the first time since January 2013. Looking at the imports side, imports grew mainly in the areas of capital goods and consumer products. There was growth in imports of gases thanks to unit price hikes and in crude oil thanks to a rise in import amount growth, while imports of steel and coals declined. - Import growth rate of five major items (%): Gases 4.9, crude oil 0.4, petroleum products 0.0, steel - 1.9 and coal -14.6 Among capital goods, imports of semiconductor manufacturing equipment doubled, and imports of the IT sector, including parts of wireless devices, memories and LCD devices, grew. Among consumer products, imports of automobiles, clothes and shoes dramatically grew. Deputy Director Song Jeong-hun, Exp date2014-04-04
-
Trade/Investment
South Korea Achieves No. 2 Global Market Share for Semiconductors
According to the international semiconductor market research group HIS Technology (US), in 2013 South Korea reached the No. 2 position in its global share of the semiconductor market, trailing the US and surpassing Japan for the first time in history. This was attributable to the strong memory market and Korea’s strengthened competitiveness in the area of semiconductors for mobile devices. According to the final data released, South Korea’s global market share was up slightly from date2014-03-25
-
Trade/Investment
Voice of Industry Leads the Way for Next Steps in Trade Policy
The Ministry of Trade, Industry and Energy (MOTIE, Minister: YOON Sang-jick) and the Korea International Trade Association (KITA, Chairman & CEO: HAN Duck-soo) held the Trade & Industry Forum* at COEX on the afternoon of Tuesday March 18. Participants in the forum, which was co-chaired by the heads MOTIE and KITA, included Korea Federation of Textile Industries Chairman Ro Hee-Chan, Korea Automobile Association President Kim YongGeun, INNO BIZ CEO SeongMyung-gi, Korean Advanced Farmers Federation CEO Kim Jun-bong, Korea Food Research Institute Chairman Park In-gu, Korea Fisheries Association Chairman Jae-Young Park, Korean Bar Association President We Chul-Whan, Korea Federation of Banks Chairman BahkByongWon, and Korea Association for ICT Promotion Vice President Rho Young-Gyu. * Trade & Industry Forum: Led by the Minister of Trade, Industry and Energy and the CEO of KITA as co-chairmen, the forum included leaders in the industries of manufacturing, agriculture & fisheries, and services, and established 22 subcommittees to support the development of countermeasures related to negotiations, analyze the impact of negotiations on each industry, and form complementary measures in the domestic market. At the forum, the participants discussed ①the direction of Korea’s trade policies, ②overall trends and possible response options for the Trans-Pacific Partnership(TPP) and overview of the ROK-Canada FTA, and ③ways to utilize the achievements made in Korea's summit diplomacy. There was also a report on ④the outcomes of subcommittee meetings of the Trade & Industry forum Recently, Korea concluded bilateral free trade negotiations with Australia and Canada, both of which are outstanding achievements. However, there are numerous challenges left ahead, such as the Korea-China FTA, the Trans-Pacific Partnership (TPP) and the impending expiry of the special treatment for rice under the Agreement on Agriculture of the World Trade Organization. Korea plans to pursue the Korea-China FTA with highest priority with expectations to offer more opportunities to Korea's corporations. In parallel, the government will work towards mitigating the negative impacts on vulnerable industries such as agricultural and fisheries goods. When it comes to joining the TPP, there will be a thorough review of the TPP's impact on our industries based upon the results of the preliminary bilateral talks. At the forum, high-level government officials provided information on policies aimed at reducing non-tariff barriers(NTBs) along with an introduction of cases in which NTBs were reduced. There was also an emphasis on the importance of cooperation with the industry. In terms of the TPP's impact on each industry, the government and industry reached a consensus on the need to mutually strengthen dialogue and cooperation. In particular, both sides stressed the need to analyze not only the short term but also the mid-to-long-term impact of the TPP, to monitor the progress of the pact and to review and prepare for the impact of supply chain in the TPP region on corporations and industries. To help businesses enjoy the benefits of achievements made through summit diplomacy initiated by President Park Geun-hye, the government launched a special web portal. There was a demonstration of the portal during the forum, showing how businesses can find real business deals that can be made based on the agreements made between heads of States. The government unveiled plans to maximize the mid-to-long-term results of summit diplomacy by establishing systems to provide customized support to companies that can benefit from the achievemen date2014-03-20
-
Trade/Investment
Korea’s trade surplus in ICT is on the rise thanks to advanced · emerging economies’ increase in ICT product exports
Korea’s ICT product exports in February 2014 were recorded as USD 12.84 billion, up by 8.4% compared to the same period in the previous year. Korea’s ICT product exports increased evenly in the advanced and emerging countries based on export restoration in the U.S., European countries and Japan, as well as export expansion to ASEAN 〮 Latin American countries. By region, ITC product exports to the U.S. increased to USD 1.12 billion, up by 7.9%, while those to EU countries, Japan, ASEAN countries, and Latin American countries were recorded as USD 1.34 billion (up 1.9%), USD 0.53 billion (up by 19.7%), USD 1.65 billion (up 5.4%), and USD 0.76 billion (up 8.3%), respectively. By item, mobile phones (USD 2.05 billion, up 37.7%), semiconductors (USD 4.47 billion, up 14.6%) and D-TVs (USD 0.53 billion, up 8.6%) all continued to lead the increase in exports. Korea's ICT industry was in the black, recording a surplus of USD 6.63 billion, which served as a driving force to reach the nation’s trade surplus of USD 0.93 billion for the month. ICT product export performance and trade balance in February in recent years are shown in the figure below. By region, imports from most countries such as China (including Hong Kong, USD 2.16 billion, up 15.6%), ASEAN countries (USD 1.01 billion, up 27.2%), the U.S. (USD 0.6 billion, up by 5.4%) and EU countries (USD 0.46, up by 9.7%) increased. As well, it is expected that ICT product exports will remain strong mainly with restoration in the world ICT markets and growth of major items such as Smartphones, and semiconductors. date2014-03-12
-
Trade/Investment
MOTIE Holds the First Council to Support Export Investment in 2014
- Company A : ㅇ Ships are classified as foreign ships once they pass the export customs. Workers must report to the authorities every time they go onboard to finish jobs. ⇒ Difficult to react swiftly to emergencies, and can cause delayed delivery - Company B : ㅇ Insurance policy of Ksure (mid/long term export insurance, financial insurance on overseas business, etc.) is not approved as official collateral for domestic banks (unlike global banks) when loans for overseas PJT are needed ⇒ Companies under stress due to additional interest rate (0.7~1.5%) - Company C : ㅇ Agencies that provide export support rarely share information on trade statistics (local autonomous bodies, trade associations, KOTRA, etc.) ⇒Makes it difficult for relevant agencies to implement support policies catering to each company - Company D : ㅇ Sight protective spectacles and contact lens are classified as items for medical purposes and are banned from being sold in online shopping malls ⇒ Overseas consumers can purchase them in global online shopping malls, but cannot in domestic online malls Actually, the issues considered to be a “thorn in the side” of these companies that were raised at the 2nd meeting to promote trade investment (last July) were recently completely resolved. For instance, in the past, companies that exported services such as software had to issue confirmation of export/import and export result certificate from relevant associations (Korea International Trade Association, Korea Shipowners’ Association, etc.) and foreign exchange banks, respectively, in order to receive trade financing. But the law (Regulations governing international trade) was revised last September, enabling one-stop issuance of the certificates as of March 1st. In addition, the meeting also discussed detailed measures to achieve “Creation of new growth engine for export,” the implementation direction of which was proposed at the 2014 MOTIE report on Feb. 24th. Facilitation measures such as dev date2014-03-05
-
Trade/Investment
Export and Import Trends in February 2014
More specifically, exports of wireless communication devices increased thanks to growing demand in emerging markets, exports of semiconductors increased thanks to strong memory prices, and exports of IT devices and automobiles increased thanks to the product competitiveness and improved brand recognition enjoyed by Korean companies. On the other hand, exports of petroleum products and LCD devices were down due to the continued decline in the price of panels related to instability in supply and demand, as well as exports of ships due to delays in delivery. - Export growth by item (%): wireless communication devices 34.5, semiconductors 14.5, automotive products 9.1, steel 0.4, general machinery -2.4, petrochemicals -6.8, ships -7.0, LCD -11.1, petroleum products -15.4 By nation, exports to the EU (expansion of exports of wireless communication devices and consumer electronics), the ASEAN countries (growing exports of ships), and China (strong sales in capital goods such as general machinery) all increased. However, the sharp drop in ship exports resulted in a temporary decrease of exports to the US and Latin America. In addition, the weak Yen continues to drive down exports to Japan. In terms of the F5 nations, exports to Turkey and Brazil picked up, while exports to South Africa and Indonesia suffered. - Export growth by nation (%): ASEAN 15.1, EU 10.6, China 3.8, US -6.7, Latin America - 11.9, Turkey 29.3, Brazil 24.5, India 1.4, Indonesia -34.9, South Africa -69.1 date2014-03-04
-
Trade/Investment
MOTIE Hold Meeting on Recent Export Conditions by Business Sectors
The Ministry of Trade, Industry and Energy (Minister: Yoon Sang-jick) held a meeting on „Import/Export trend review for different business sectors,‟ hosted by Vice Minister for Industry and Technology Kim Jae-hong. The meeting was held at the Korea Trade Insurance Corporation (K-Sure) (Conference hall on the 11th floor) on February 18th, 2014. Twenty officials from 11 organizations representing different business sectors and export-related organizations participated in the meeting. * Organizations representing different business sectors: the Korea Offshore & Shipbuilding Association, the Korea Semiconductor Industry Association, the Korea Association of Machinery Industries, the Korea Display Industry Association, the Korea Automobile Manufacturers Association, the Korea Electronics Association, the Korea Petrochemical Industry Association, the Korea Federation of Textile Industries, the Korea Petroleum Association, the Korea Iron & Steel Association, the Korea Auto Industries Coop. Association * Export related organizations: K-Sure and Kotra It is expected that exports of most of Korea‟s major export items this year will show growth thanks to the economic recovery of advanced nations like the US and European countries. * Economic growth prospect for 2014 (IMF, %): Global 3.7, US 2.8, EU 1.0, China 7.5, Japan 1.7 * 2014 prospect: (Export) USD 595.5 billion, 6.4% ↑, (Trade balance) USD 33.5 billion surplus Not only exports to advanced nations but also indirect exports through China (IT devices), Vietnam (Wireless communication devices), and Indonesia (Textile) will grow this year. However, our exports can be affected if the crisis in emerging markets caused by the US tapering* is reflected in the real economy. In addition, the strong Won/weak Yen and expanding protectionism pose threats to our exports. To ensure that exports continue to serve as an engine for our economic growth given the harsh external conditions, the meeting reviewed recent trends of 13 major export items that represent around 80 percent of our exports, and also paid attention to the difficulties of the field. Vice Minister Kim Jae-hong stressed, “We had a smooth start in exports this year, with average daily exports in January rising 8.9 percent year on year. However, as the external conditions are still unstable with the financial crisis in emerging markets and the weak Yen, affected organizations and businesses should strive to expand exports by SMEs and high potential enterprises.” Deputy Director Song Jeong-hoon, Export & Import Division (☎ 044-203-4042) date2014-02-19