South Korea’s memory-chip exports return to growth for first time in 16 months

SEOUL – South Korea’s memory chip exports increased in October for the first time in 16 months, offering more evidence for the revival of demand for the country’s most important products.

Memory exports rose 1 per cent from a year ago after dropping 18 per cent in September, according to data released on Tuesday by the Trade Ministry.

Multi-chip packages led the rebound, rising 12.2 per cent, while the sales of dynamic random access memory – the most lucrative category – narrowed their decline to single digits for the first time in more than a year.

Semiconductors form the backbone of exports for South Korea’s economy, which the central bank sees growing 2.2 per cent in 2024, should trade improvement hold up. That would be a pick-up from a 1.4 per cent expansion expected for 2023.

South Korea’s overall shipments abroad rose in October for the first time since late 2022, in a positive sign for the nation’s growth outlook and recovering demand from the global economy.

The breakdown of technology exports on Tuesday bears out the view that semiconductors would lead the growth in exports for South Korea and underpin economic momentum.

A further analysis of technology exports showed display sales rose 13.1 per cent in October from a year earlier, a pick-up from the 1 per cent growth a month earlier.

Mobile phone shipments fell 3.3 per cent, a more moderate decline than the 5.2 per cent fall in September. BLOOMBERG