IT exports set new record

Korea’s information technology exports by volume hit a record high in the first half of 2010, as did its trade surplus in the sector, mainly led by a boost in demand for semiconductors and display panels, according to the Ministry of Knowledge Economy yesterday.

By volume, IT exports reached $72.87 billion, topping the previous record of $70.2 billion posted in the second half of 2007 by $2.64 billion. The industry trade surplus also increased from a previous high of $34.4 billion from July to December of 2009 to $37.6 billion for January to June this year.

In particular, shipments of semiconductors to overseas markets reached $23.6 billion in the first half, a 99 percent increase on-year, while display panel exports also rose to $16.3 billion, a 47.1 percent jump. Display panels were highly sought after especially in emerging markets such as China and Brazil.

Mobile phone exports, in contrast, dropped 20.8 percent to $11.4 billion due to a decline in export unit prices and a delay in smartphone production by Korean firms.

Demand dropped across the world’s developed markets, including the United States, the European Union and Japan, as well as China and the Middle East.

By region, Korea exported the most IT products to China, selling $33.1 billion worth of items in the country including Hong Kong, followed by the European Union with $8.99 billion and the United States at $8.49 billion. Exports to Japan and Latin American countries also surged from a year earlier to $3.55 billion and $4.38 billion, respectively.

With the new all-time highs posted in the first half, the ministry expects the export surge to continue in the coming months, led by increasing demand and the development of new IT devices, especially 3-D televisions, smartphones and tablet personal computers.

The country also saw a 25.5 percent increase in IT imports on-year in the first half, totaling $35.24 billion, led by an increased demand for electronics parts and computer devices.

By Lee Eun-joo [angie@joongang.co.kr]