The ICT trade balance in January was in surplus, but the overall trend was downward.
Slowing smartphone growth, impact of China's aggressive production

In January, ICT exports amounted to $11.86 billion and imports to $6.79 billion, resulting in a trade surplus of $5.07 billion. The Ministry of Trade, Industry and Energy announced that ICT exports in January decreased by 17.8% compared to the same month of the previous year.

Looking at the breakdown by item, overall performance was sluggish, including mobile phones ($1.9 billion -7.3%), semiconductors ($4.53 billion -13.9%), displays ($2.01 billion -30.7%), and computers and peripherals ($590 million -10.1%).

ICT exports $11.86 billion, imports $6.79 billion… Trade surplus of $5.07 billion

The Ministry of Trade, Industry and Energy analyzed the reasons for this sluggish performance, stating that mobile phone exports declined due to offensives by latecomers such as Huawei, a slowdown in smartphone market growth, and the expansion of the mid-to-low price market, while the decline in display exports intensified due to stagnant global demand and falling unit prices resulting from the aggressive production expansion of Chinese companies.

▲ Visitors to the exhibition hall are examining a company's smartphone (Reference photo)


Semiconductor exports also decreased due to falling DRAM prices and slowing global market demand for smartphones, while computers and peripherals showed a double-digit decline due to reduced global market demand and the base effect of the previous year for auxiliary storage devices (SSDs, etc.) (exports in January 2015 increased by 54.9%).

By region, exports to ASEAN ($1.85 billion, 0.4% increase) increased, but exports to most other regions decreased, including China (including Hong Kong, $6.41 billion, 17.3% decrease), the United States ($1.17 billion, 2.8% decrease), the EU ($750 million, 20.2% decrease), and the Middle East ($280 million, 29.6% decrease).
th: 600px; height: 163px;" />
▲ Status of ICT Exports (billion USD) and ICT Imports (billion USD) in January by Year

Exports to the ASEAN region increased by 0.4%, driven by expansion in mobile phones ($370 million, 15.8%) and displays ($120 million, 21.6%), despite a decline in semiconductor exports ($870 million, -3.2%). China, the largest export market, recorded a double-digit decline, centered on displays ($1.62 billion, -24.9%) and semiconductors ($2.84 billion, -13.7%).

Exports to the U.S. increased for mobile phones ($440 million, 7.5%↑) and displays ($10 million, 32.1%↑), but declined due to sluggish performance in semiconductors ($260 million, △14.6%) and computers and peripherals ($100 million, △17.5%). Exports to the EU decreased for 13 consecutive months due to economic slowdown and sluggish performance in displays ($90 million, △61.7%) and semiconductors ($120 million, △21.0%), excluding mobile phones ($90 million, 11.0%↑).

Memory semiconductor imports increased, while system semiconductor imports decreased.

On the other hand, ICT imports amounted to $6.79 billion, down 15.1% from the same month of the previous year.

By item, imports of D-TVs increased ($0.4 billion, 15.4%↑), while imports of semiconductors ($2.8 billion, △16.5%), displays ($3.7 billion, △31.8%), mobile phones ($6.3 billion, △30.4%), and computers and peripherals ($900 million, △2.4%) decreased.

Regarding semiconductors, imports of memory semiconductors ($610 million, 11.8% increase) increased, centered on DRAM back-end processing volume, but imports of system semiconductors ($1.75 billion, 23.0% decrease) decreased due to increased in-house production by domestic companies. Mobile phone sales declined due to lower demand for foreign smartphones compared to their predecessors and pent-up demand resulting from the launch of new smartphones.

By region, imports decreased in most countries, including China (including Hong Kong, $2.49 billion, down 28.1%), ASEAN ($910 million, down 18.5%), Japan ($700 million, down 16.4%), the United States ($620 million, down 11.3%), and the EU ($440 million, down 12.4%).

The ICT balance recorded a surplus of $5.07 billion driven by surpluses in key items such as semiconductors, mobile phones, and displays, leading to the achievement of an overall trade surplus of $5.33 billion. The trend of ICT trade surpluses continued with China ($3.92 billion, the largest surplus country), the European Union ($310 million), and the United States ($550 million), while a trade deficit of $400 million was recorded with Japan.