Logo of Phnom Penh Post newspaper Phnom Penh Post - Chips, petrochemicals help Korea exports hit record high last year

Chips, petrochemicals help Korea exports hit record high last year

Content image - Phnom Penh Post
Chip exports played a key role in export growth last year, hitting a record $126.7 billion, up 29 per cent from 2017. SK HYNIX INC/THE KOREA HERALD

Chips, petrochemicals help Korea exports hit record high last year

South Korea’s exports set a new high of $600 billion last year mainly driven by a strong performance in chips, petrochemicals and machinery, according to the government on Tuesday.

The Ministry of Trade, Industry and Energy said the nation’s trade volume hit a record high of $1.1 trillion, having a trade surplus of $70 billion. Exports stood at $605 billion, up 5.5 per cent from 2017, and imports recorded $534 billion, an 11 per cent rise during the same period.

Chip exports played a key role in export growth, hitting a record $126.7 billion, up 29 per cent from the previous year despite falling prices for memory chips.

This is because the chips used for digital devices increased in capacity and demand for memory chips continued to increase, the ministry said.

Petrochemical exports rose 12 per cent year-on-year to reach $50 billion. Their growth was driven by rising unit prices due to a surge in oil prices.

Exports of machinery reached an all-time high with a volume of $53.5 billion on the back of upward trends in construction and manufacturing in key nations and rising exports to emerging nations, including India.

Exports from eight new industries also rose 6.9 per cent to reach $78.8 billion combined. They were electric cars, new materials, bio-health, next-generation chips, next-generation displays, aerospace, energy and robots.

The US and China were Korea’s two major export destinations, despite trade conflicts and growing protectionism.

Korea’s exports to China reached the highest level ever with a volume of $162.2 billion, up 14.2 per cent on-year due to the nation’s stable economic growth and a continued rise in exports centring on chips, petroleum goods, machinery and computers.

Korea’s exports to the US rose six per cent on-year to reach $72 billion on the back of rising exports of machinery amid the construction boom as well as rising exports of chips for use in data centres, artificial intelligence and 5G networks.

Exports to the Asean region also rose 5.3 per cent to reach $100 billion.

The ministry forecasts that export conditions for Korea will be tougher this year due to a slowdown in the economic growth of key nations as well as trade conflicts between the US and China.

The red light is also flashing for chips, the nation’s main export driver, which fell 8.3 per cent last month on-year. The year-on-year drop was the first in 26 months, and the ministry attributes it to adjusted investments in the data centres of global tech firms and the fact that supply shortages for memory chips have been remedied to some extent.

“[Still], we will continue to make efforts for the nation’s exports to reach $600 billion this year by actively responding to ongoing trade conflicts as well as exploring new southern markets,” said Minister of Trade, Industry and Energy Sung Yun-mo. THE KOREA HERALD/ANN

MOST VIEWED

  • Without shoes or a helmet, a young cyclist steals the show

    Pech Theara gripped the curved handlebars of his rusty old bike, planted his bare feet on its pedals and stormed as fast as he could towards the finish line. The odds were against him as the 13-year-old faced off against kids with nicer bikes at

  • Phnom Penh-Sihanoukville expressway on schedule

    The construction of the more than $1.9 billion Phnom Penh-Sihanoukville Expressway has not been delayed despite the Covid-19 pandemic, with more than 26 per cent of the project completed and expected to finish in about two years, according to Ministry of Public Works and Transport secretary of

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Cambodia lauded for fight against Covid-19

    Cambodia has drawn global accolades for its handling of the Covid-19 pandemic, with a new report finding that the Kingdom has controlled the pandemic better than any other country in Asia. Dr Takeshi Kasai, director of the World Health Organisation’s (WHO) Western Pacific region,

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there