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Trade/Investment
Korea Records USD 33.7 Billion in Contracts
Korea Records USD 33.7 Billion in Contracts for Overseas Plants in the 1st Half of 2014 The Ministry of Trade, Industry and Energy (Minister Yoon Sang-jick) announced that Korea had recorded a historic-high contract amount for overseas plants in the 1st half of 2014, amounting to USD 33.7 billion. It is even more meaningful that this achievement was reached considering the numerous challenges, such as political uncertainty in Middle Eastern markets including Iraq and the decline in contracts date2014-07-15
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Trade/Investment
Korea’s ICT Exports Reach Historic High in the 1st Half of 2014
* Adjusted Outlook for 2014 Global ICT Growth Rate (Gartner, %): : Outlook for September 2013: 3.6 → Outlook for May 2014: 3.2%, reflecting the slowdown in the growth rates of emerging economies and the smart devices sector ○ 2012. 2H - Overall ICT Export Growth Rate : 3.4% Key Items - Export Growth/Decline : 1.5% - Percentage of Export : 70.4% - Rate of Contribution to Export Growth : 32% ○ 2013. 1H - Overall ICT Export Growth Rate : 10.9% Key Items - Export Growth/Decline : 9.8% - Percentage of Export : 69.2% - Rate of Contribution to Export Growth : 63% ○ 2013. 2H - Overall ICT Export Growth Rate : 7.6% Key Items - Export Growth/Decline : 8.4% - Percentage of Export : 70.9% - Rate of Contribution to Export Growth : 78% ○ 2014. 1H - Overall ICT Export Growth Rate : 3.2% Key Items - Export Growth/Decline : 6.2% - Percentage of Export : 71.2% - Rate of Contribution to Export Growth : 133% date2014-07-10
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Trade/Investment
Export and Import Trends for June and 1st Half of 2014
By contrast, exports to China declined due to China’s increased self-sufficiency in petrochemicals and oil products. Exports to Latin America were also weak, due to a sharp decline in the export of ships. In addition to a slight increase in imports of raw materials and capital goods, there was a significant growth in imports of commodities, due mainly to a growth in automotive imports. Despite the unfavorable conditions, Korea recorded historic-high exports in the first half, mostly attributable to the robust performance of SMEs. It is expected that Korea’s exports will continue to grow, especially in the ship and automotive sectors, as global trade volumes increase thanks to the recovery of advanced economies including the US and EU. Risk factors do exist, including uncertainty over the recovery of Chinese exports, which significantly affects the exports of Korea, also the strong Won and the situation in Iraq. Consequently the government will increase monitoring. Deputy Director Song Jeong-hun, Export and Import Division (044-203-4042) date2014-07-02
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Trade/Investment
South Korea to Step Up Efforts to Attract More Global HQs and R&D centers
The revision is a follow-up measure to「Foreign Investment Promotion Measures」 announced in the meeting among foreign investment companies held by President Park Geun-hye on Jan 9, 2014. The purpose of the promotion drive is to attract global company HQs and R&D centers that can increase the growth potential of our economy and create good jobs by cultivating high-quality talents, advanced business management techniques and technology acquisition. To this end, specific incentive support plans have been announced, including an income tax cut, a simplified taxation process, and a convenient entry and departure process. * The same income tax rate applicable to foreign directors and employees (currently, 17%), an income tax cut for foreign researchers (50%), expansion of the exception list for tax data submission upon service contract, 5-year increase of foreign investor visa stay * In November 2012, Japan enacted the 「Asia Base Promotion Act」, and as a result, major companies have come up with various incentive systems and actively attracted foreign money. To be certified as a global company HQ or R&D under the revised Act, the following conditions must be met. * (Global company HQ) must be for a foreign investment company acknowledged as such by Foreign Investment Committee considering revenues (no less than KRW 3 trillion) or industry representativeness. * It must provide support and coordination to no less than two foreign companies. * The number of personnel working at the HQ should be no less than 10 and the ratio of foreign investments shall be no less than 50%. * (R&D Center) It must retain no less than 5 researchers whose qualifications include a master’s degree, or no less than 3 years of professional research. * No less than KRW 100 mil must be invested in the newly expanded R&D facility, and the foreign investment ratio shall be no less than 30%. date2014-06-17
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Trade/Investment
Korea’s ICT Exports Reach USD 14 Billion in May
- Export: USD 14 billion (-7.5%), Import: USD 6.75 billion (-1.8%), Trade Balance: Surplus of USD 7.25 billion ICT exports for May 2014 reached USD 14 billion, a year-on-year decrease of 7.5%. Daily average ICT exports* for May were USD 0.651 billion, which was just slightly lower than the USD 0.658 billion reached in the previous year, but the year-on-year decrease** was attributable to there being less business days. * Based on the number of business days for May 2014: 21.5 ** Number of business days for May 2013: 23 (6 public holidays and 4 Saturdays) Number of business days for May 2014: Between 20.5 and 21.5 (7 public holidays and 5 Saturdays, voluntary business operation on May 2 (Fri)) By nation, exports to major trading partners including China (including Hong Kong) and the US were weak, while exports to EU and Taiwan grew thanks to robust exports of parts, including semiconductors. * Exports by region: China (Hong Kong) was USD 7.04 billion, -6.3%, US was USD 1.57 billion, -10.6%, EU was USD 0.96 billion, 8.3%↑, and Taiwan was USD 0.53 billion, up 27.7% ICT exports from January to May were recorded as USD 69.9 billion, continuing the historichigh accumulated exports in 2014. * Yearly ICT exports from January to May: 2012 was USD 60.34 billion → 2013 was USD 67.96 billion → 2014 is USD 69.9 billion The ICT industry recorded a surplus of USD 7.25 billion in May 2014, contributing to the national trade surplus of USD 5.35 billion. Imports of PCs and peripherals (USD 0.71 billion, up 2.8%), mobile phones (USD 0.58 billion, up 155.9%) and display panels (USD 0.5 billion, up 2.6%) grew, while imports of semiconductor (USD 2.64 billion, down 14.9%) and D-TV (USD 0.03 billion, down 6.0%) declined. By region, imports from advanced economies including the US (USD 0.55 billion, down 11.3%) and EU (USD 0.5 billion, down 1.7%) declined, while imports from emerging regions including China (including Hong Kong, USD 2.5 billion, up 6.0%) and Latin America (USD 0.05 billion, up 9.8%) grew. date2014-06-11
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Trade/Investment
Export & Import Trends for May 2014
As advanced economies recovered, exports to the EU (growth of capital goods including IT parts) and the US (robust exports of durable goods including cars and raw materials including steel and oil products) grew, while exports to China (weak exports of raw materials including oil products and general machinery) and ASEAN (weak exports of capital goods including ships and general machinery, and the political uncertainty in Thailand) began to decline. Exports to Japan, which had grown for two consecutive months thanks to the base effect, began to decline due to weak exports of capital goods. Of the five raw materials, imports of oil products (increase of heavy oil import due to operation of the advanced equipment) and steel increased, while imports of crude oil (regular maintenance of facilities) and gases decreased. Deputy Director Song Jeong-hun, Export & Import Division ( date2014-06-03
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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
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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
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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
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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