Exports Expected to Top $600 Billion for 1st Time
03 November, 2018
Korea's exports are forecast to set a new record of more than US$600 billion this year on the back of a boom in the global memory chip market, the Ministry of Trade, Industry and Energy said Thursday. But the country's heavy dependence on memory chips could spell trouble for the export-driven economy once the boom ends.
The ministry said exports in October rose 22.7 percent on-year to an estimated $55 billion, bringing the cumulative figure for the first 10 months of the year to a record $505.3 billion.
Memory chips accounted for 21.2 percent or $107.2 billion of the cumulative total, while non-chip exports amounted to $398.1 billion. In comparison, in the same period of last year, chip exports stood at just $78.7 billion and the rest at $396.5 billion.
Six of Korea's top 13 export items suffered falls in the January to October period -- ships by 58 percent, mobile communications devices by 19.3 percent, home appliances by 18.9 percent, display panels by 10.5 percent, automobiles by 4.4 percent and steel by 0.6 percent.
Experts warn against increasing dependence on semiconductors. Prices of memory chips are declining in the global market, sending a worrying signal over the prospects for the country's exports.
Another worrisome factor is a trade dispute between the U.S. and China. The two countries accounted for more than a third of Korea's exports last year, with China taking 24.8 percent and the U.S. 12 percent.
The ministry said, "A drawn-out trade dispute between the U.S. and China and increased volatility in global financial markets are expected to have a negative impact on our exports."
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