South Korea’s top export item semiconductors dipped back below the 20 percent share in total outbound shipments last year as the industry suffered its worst year in a decade, while autos reclaimed their No. 2 spot helped by brisk sales of sport utility and electric vehicles.

Chip exports fell 25.9 percent on year to $93.9 billion won ($81.1 million) in 2019, according to the Ministry of Trade, Industry and Energy, Korea International Trade Association and Korea Customs Service on Sunday.

Semiconductors held the title as the country’s No. 1 export for the seventh straight year. But their share in total exports slipped to 17.3 percent from a historic high of 20.9 percent in 2018 as memory chip prices went into freefall after a two-year boom due to oversupply and cooling demand. After a near 15-month-long slump, NAND and DRAM chip prices have started to pick up again, prompting analysts to project a strong turnaround in 2020.

Automobiles accounted for 7.9 percent of Korea’s total exports, reclaiming the No. 2 position lost to marine vessels and parts in 2017 and petrochemicals in 2018. Outbound shipments retreated 1.9 percent on year in terms of unit volume but rose 5.3 percent in value to 43 billion won, thanks to upbeat sales of the pricier SUVs and eco-friendly vehicles.

Petrochemical goods followed with a 7.5 percent share, auto parts 4.2 percent, flat panel displays and sensors 3.8 percent, synthetic resin 3.7 percent, marine vessels and parts 3.7 percent, steel plates 3.4 percent, wireless communication devices 2.6 percent, and plastic products 1.9 percent. Plastic goods elbowed out computers to make it back to the top 10 in four years.

The top 10 export items totaled $304.2 billion in 2019 to account for a combined 56.1 percent of total outbound shipments. This was lower than the previous year’s 58.5 percent, reflecting the country’s more diversified export portfolio.

In terms of imports, crude oil remained Korea’s top purchase for the 19th consecutive year, ever since it edged out semiconductors in 2000. But its share fell to 13.9 percent from 15.0 percent due to falling international oil prices.

Chips came third with a share of 9.3 percent, followed by natural gas 4.1 percent, petrochemical products 3.5 percent, coal 2.8 percent, wireless communication devices 2.7 percent, automobiles 2.4 percent, computers 2.3 percent, refined chemical materials 2.3 percent, and apparel 2.2 percent. Chip making equipment, which ranked fifth in 2018, fell out of the top 10 amid the industry downturn.

By Pulse

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