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[세종=이데일리 김상윤 기자] In the new year, exports to Korea have widened. Semiconductors and automobiles, which are the pillars of the Korean economy, are driving overall exports, and petrochemicals are also getting out of the sluggish swamp. System semiconductors, electric vehicles, organic light-emitting diodes (OLEDs), and medical devices, which are the foods of the future, also recorded double-digit growth, and a’green light’ turned on in overall exports.
The Ministry of Trade, Industry and Energy announced on the 1st that the export amount in January was 48 billion dollars, an increase of 11.4% compared to the same period last year. This is the second record in January.
As the number of working days (22.5 days) is more than January last year, exports have also increased. Nevertheless, considering that the average daily exports ($2.13 billion) reached a record high as of January, it is analyzed that exports are showing a clear recovery trend.
Korea’s exports shrank sharply in the aftermath of Corona 19 in the first half of last year, but have been rebounding since last November. It has increased for the third month following 4.1% in November and 12.6% in December. It has been 40 months since exports showed a double-digit increase for the second consecutive month.
Semiconductor, the leader of exports, continues to rise. IT demand is increasing due to the spread of non-face-to-face transactions. Semiconductor exports increased 21.7%, recording a double-digit growth rate for 5 consecutive months. In addition, automobile exports, which had been slowing for a while in December last year, also increased by 40.2%, contributing to the recovery of exports.
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◇Future food system semiconductor, electric car, OLED also flew
Semiconductors and automobiles are the two engines of Korean exports. As of January, exports of semiconductors and automobiles accounted for 18.16% and 8.3%, respectively. This means that the two industries were responsible for a quarter of all exports.
Semiconductor exports led by Samsung Electronics and SK Hynix increased 21.7%, recording a double-digit growth rate for 5 consecutive months. Automobile exports, which had been slowed for a while due to inventory processing at overseas branches at the end of last year, also increased by 40.2%, contributing to the increase in exports. Semiconductors and automobiles serve as a definite traction vehicle to boost overall exports, but they are double-edged swords. This is because if semiconductors and automobiles are repaired, the entire Korean economy can be shaken.
In that respect, the January export performance was a report card that showed hope not only in terms of quantity but also in terms of quality. Of the 15 major items, all 12 items increased.
According to the Ministry of Trade, Industry and Energy, exports in January were 48 billion dollars, up 11.4% year-on-year, while exports to IT-related industries surged.
In addition to semiconductors, wireless communication devices such as mobile phones (58.0%) and displays (32.2%) also recorded a significant increase. As for displays, competitiveness has deteriorated due to China’s low-cost LCD offensive, but as the non-face-to-face economy is revitalized recently, LCD unit prices for laptops and TVs are rising significantly. The 14-inch laptop LCD price was only $26 in January last year, but it rose 7 times to $181 in January. Demand for high value-added products such as large and foldable OLEDs is also steadily increasing.
Biohealth exports, which are still’fast followers’ (fast follower), also increased 66.5%, showing growth potential. This is thanks to the record high in exports of Corona 19 diagnostic kits thanks to the K quarantine. Secondary batteries also increased by 9.9% thanks to the growth of the electric vehicle market. Cosmetics exports also increased 62.6% as demand for makeup and basic cosmetics from China increased.
The semiconductor and automobile sectors are also rapidly transforming into high value-added industries. Exports of system semiconductors, which also possess computational processing functions like computer CPUs, increased 16%, and exports of electric vehicles surged 81.0%.
In addition, exports of petrochemicals (8.6%) rebounded after 26 months as demand for packaging materials and medical synthetic rubber increased significantly. The steel industry (6.0%) recorded an increase in 4 months as demand for steel increased thanks to the economic recovery.
However, general machinery (-4.8%), textiles (-7.9%), and petroleum products (-46.0%) were still sluggish. In the case of petroleum products, the decline in oil prices is easing, but export unit prices still have not recovered. The export price of petroleum products decreased 22.1% from $73.2 per barrel in January last year to $57 in January.
By region, the three export markets, including China (22.0%), the United States (46.1%) and the European Union (23.9%), all recorded an increase of more than 20%, showing signs of escape from the impact of Corona 19.
Imports amounted to 44 billion US dollars, up 3.1% year-on-year. Capital goods imports linked to facility investment increased by 46.1%. This means that Korean companies are investing in facilities in advance in preparation for the economic recovery. The trade balance was $3.96 billion.
An official from the Ministry of Industry said, “The good export trend in January was thanks to the good performance of our flagship items such as semiconductors, automobiles, ships, and biohealth.” It was possible because of the rapid growth.”
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Exports continue to rise… Biden administration uncertainty concerns
The rise in exports is expected to continue for the time being. This is due to the global economic recovery, the improvement of the trade environment, and the base effect from the decline in exports last year. However, the risks of US-China conflict and protectionism from the inauguration of the Biden era still exist. According to the ‘2021 Export Outlook and Exchange Rate and Trade Issue Inspection Survey’, recently announced by the National Federation of Entrepreneurs, companies were concerned with the spread of Corona 19 (49.8%), trade disputes between the US and China (22.2%), strengthening environmental regulations (15.5%), and protection. The proliferation of tradeism (10.4%) is cited as a major trade problem.
The Ministry of Industry is planning to visit Washington, DC this week, with a trade line centered around the supply of loans. I will meet with the Biden administration and key think tank officials. The plan is to gather information on US trade policy and outreach (external contact and persuasion).
A senior official from the Ministry of Industry said, “We have not yet reached key US personnel, but we need to collect information centering on the think tank and US politics.” I said.