Materials and Components Exports Turn Positive in Q4 for First Time in Seven Quarters
Exports of $25.19 Billion, Trade Surplus of $9.94 Billion Representing 111% of All Industries

Materials and components exports in Q4 2016 increased 2.0% for the first time in seven quarters since Q1 2015.

Exports (2.0%), imports (1.7%), and trade balance (6.3%) all turned positive, and export unit prices showed a recovery trend. In 2016, our materials and components exports totaled $25.19 billion (up 4.8%), imports totaled $15.25 billion (up 4.5%), and the trade surplus reached $9.94 billion.



▲Materials and Components Industry Trade Performance

Materials and components exports last year declined 4.8% ($1.27 billion) compared to the previous year. However, export and import growth rates showed recovery from November 2016 onward, marking two consecutive months of growth for the first time in 20 months. The Ministry of Industry announced plans to implement the Fourth Basic Plan for Materials and Components Development (December 27, 2016) without delay, converting materials and components policy to support the fourth industrial revolution, thereby backing the cultivation of related new industries and the advancement of leading industries.

Materials showed positive growth in both exports (up 2.7%) and imports (up 0.9%) in the second half compared to the first half. Components showed a slight decline in year-on-year trade results, but certain items such as electrical machinery components and computers and office equipment led export recovery in the second half of 2016.

By region, exports to China decreased (down 11.5%), while exports to ASEAN (up 8.9%) and Japan (up 3.2%) increased. China saw decreased exports of electronic components (semiconductors, displays, wireless communications equipment) and transportation machinery due to improved self-sufficiency in materials and components. The ASEAN region saw increased trade volume following the implementation of the Korea-Vietnam Free Trade Agreement (FTA), and exports grew due to expansion of Korean companies entering Vietnam. In particular, export performance expanded centered on electronic components and electrical machinery components. Japan experienced significant increases in transportation machinery components and electrical machinery components including generator parts, as complete vehicle manufacturers diversified supply chains following the Kumamoto earthquake in the second half of the year.

By region, imports declined in most areas including Europe (down 14.6%) and China (down 8.2%), while Vietnam (up 37.9%) and Japan (up 3.1%) within ASEAN showed increases.

Do Gyeong-hwan, Director of Industrial Base at the Ministry of Industry, stated, "We will actively support advanced new materials and components technology development, future-type materials and components infrastructure construction, and global partnering (GP) business expansion to promote high value-added growth of our materials and components industry, and concentrate all policy capabilities to achieve positive export growth and a trade surplus of $100 billion in 2017."