Korean Export Growth

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Despite adverse market conditions, Korean exports recorded growth for the third straight year. But it's too early to say that exports are recovering in earnest yet. Here’s more.

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Korean manufacturers of semiconductors have invested heavily in R&D since the early stages. As a result, demand for Korean semiconductors has soared overseas. They have set a higher export target for this year.

[Soundbite] Chung Young-bae(CEO, ISC) : "Highly recognized as the world's top producer, we expect our exports to account for 70 percent of our sales revenues."

Semiconductor exports recorded an all-time high last month, surging more than 40 percent year-on-year on the back of the global market growth. The rebound of semiconductors, Korea's top export item, has boosted the nation's overall exports by more than 11 percent compared to the corresponding period a year ago. Exports of semiconductors recorded the first double-digit growth in four years and expanded for three consecutive months for the first time in 33 months. Petroleum product exports also posted double-digit growth, contributing to exports overall. However, exports of automobiles and wireless communication devices, which are also among Korea's major export items, dropped sharply.

[Soundbite] Chae Hee-bong(Ministry of Trade, Industry and Energy) : "Exports are predicted to continue to recover, but we must not let our guard down because of various downside risks such as growing protectionism in global trade and the slowdown in China's economic growth."

Things are finally looking up for Korea's exports after their worst-ever decline. But the government's diagnosis is that it remains to be seen whether they are recovering in earnest, given the strong impact of external factors such as soaring international oil prices.