In the first half of this year, South Korea's semiconductor exports may continue to be sluggish, which needs to be driven by China's demand

28 August 2023

According to Korean media reports, the export of Korean semiconductor products further deteriorated in January this year, with a year-on-year drop of 44.5%. The export of Korean semiconductor products continued to decline, mainly affected by the overstock of storage semiconductor inventory and shrinking PC demand. The recession may continue in the coming months.

Kim Yu-mi, a researcher at Kiwoom Securities, said: "With the rising expectations of demand improvement after China's reopening, the concern about the global economic downturn seems to have eased, but it seems difficult to reflect it as soon as possible".

Kim Hyo-jin, a researcher at KB Securities, said: "In the first half of this year, South Korean semiconductor exports will continue to decline, and exports to China may continue to decline, but it is expected to rebound in the future".

Shin Yun-jung, a researcher at eBest Investment&Securities, said: "The impact of China's re-opening reflects the time lag in exports. The recession of the semiconductor industry and the high dependence on China's trade will be shown as factors restricting the improvement of exports, and exports will still become a burden on the Korean economy for a period of time."