SOUTH Korea’s exports of technology products slowed for a straight second month in an indication global demand may be peaking out, according to government data that also showed memory-chip shipments and prices losing momentum.
Exports, primarily based on information and communication technology, rose 24 per cent from a year earlier in September, slowing from 28.5 per cent in August, the trade ministry said on Monday (Oct 14). Shipments of dynamic random access memory, the most lucrative product for South Korea, increased 57.1 per cent in the slowest growth since December last year.
Prices of both Dram and Nand flash memory also dipped last month, according to Dramexchange data provided by the ministry. Demand for memory chips has helped South Korea’s economy grow faster than initially projected this year, fuelled by global artificial intelligence development.
With Samsung Electronics and SK Hynix among its top earnings generators, South Korea relies heavily on technology to drive its trade, supplying smartphones, computer screens, rechargeable batteries and other components embedded in cutting-edge consumer goods.
Technology shipments account for roughly a third of South Korea’s total exports. While its growth showed signs of cooling, economists and policymakers say it is unlikely to chill quickly, helping the economy carry its momentum into next year. The confidence helped the Bank of Korea keep its benchmark interest rate elevated until a cut to 3.25 per cent last week. BLOOMBERG
