Korean Semiconductor Exports Continue to Decline Due to Global Demand Slump

The continued decline in semiconductor demand globally is causing a significant impact on the South Korean electronics industry. According to recent trade data released by South Korea's customs office, exports have continued to plummet due to the persistent weakness in global demand for semiconductors. During the first 20 days of March, the average daily export volume decreased by 23.1% compared to the same period last year. While total exports fell by 17.4%, the sales revenue for semiconductors dropped by a staggering 44.7%, with exports to China falling by 36.2%.

This trend of declining exports has been going on since the end of last year, and it has been attributed to the drop in semiconductor prices and weakened demand from China. Additionally, high energy prices and the depreciation of the South Korean won have pushed up import costs, causing the trade deficit to continue to expand.

The decline in sales revenue for semiconductors indicates that both consumers and businesses are reducing their global spending. This trend is expected to have a significant impact on the South Korean economy, which had already shrunk in the previous quarter.

The latest trade data shows that out of the ten export destinations, the United States is the only country that saw an increase in demand for South Korean exports, growing by 4.6% year on year. However, exports to Vietnam saw a decline of 28.3%.

Overall, the trade deficit in March has reached $6.3 billion, with most exported products, including steel, wireless communication devices, and precision equipment, experiencing a decline in demand. The standout performer in terms of export volume was the automotive industry, with a year on year increase of 69.6%.

While the current situation in the South Korean electronics industry may be challenging, it is also an opportunity for distributors to explore new markets and diversify their product offerings.