South Korea’s ICT exports skid

South Korea’s information communications technology exports have reduced for 11 straight months due mostly to a slowdown in need for memory chips, data showed.

Going by to the Trade Ministry, Korea’s ICT exports stood at $15.8 billion in September reduced 22 percent from the same time last year. The on-year decrease has continued for 11 consecutive months since November the previous year.

The shipment of chips last month was at $8.5 billion, a 31.5 percent drop on-year. Despite an optimistic lead from non-memory chips, exports of memory chips came in at 6 billion, down 41.4 percent due to a slowdown in need and falling costs.

The Cost of 4-gigabytes DRAM reduced to $1.91 last month compared to $3.7 for the same month the last year.

Park Jong-won, chief of the Trade Ministry’s chip and display section, connected this year’s fall to an unprecedented boom in the memory industry in 2018.

The world’s biggest memory chip maker Samsung Electronics and its smaller rival SK hynix enjoyed record-high earnings previous year. In the third quarter this year, they are expected to post around $2.5 billion and $300 million in operating gain, respectively, one-fourth and one-tenth compared to the last year.

Exports of display panels stood at $2 billion last month decreased 20 percent on-year. Despite the increase in demand for OLED panels, the shipment for LCD panels slowed down because of the oversupply from China, the ministry stated.

Smartphone shipments came in at $1.1 billion, higher 2.8 percent on-year. Due to the release of new premium smartphones, including Samsung’s Galaxy Note 10, the export growth turned optimistic in 14 months.