Recently released data from the South Korean Ministry of Information and Communication shows that Korean IT exports exceeded industry forecasts, posting year-on-year growth of 29.4% to reach a total of US$74.3 billion in 2004. The Ministry attributed the robust growth figures to strong sales for semiconductors and mobile phones.

Korean IT exports for December 2004 reached US$5.8 billion and grew by 2.3%, while imports dropped by 4.6% for a total of US$3.4 billion. As a result, South Korea enjoyed a US$2.4 billion trade surplus for the month. IT imports for the entire year grew by 12.1% to total nearly US$41 billion. However, Korea's IT trade surplus for 2004 amounted to US$33.5 billion, an increase of US$21 billion over 2003.

Semiconductors and key components, along with mobile phones, digital TVs, and STB (Set Top Boxes) all posted considerable export growth in 2004. Exports of DRAM (Dynamic Random Access Memory) and flash memory chips grew 30.6% year-on-year to US$33.8 billion. Flash memory chip exports alone ballooned by 91.9%. With lower prices brought on by excessive supply, the Ministry expects only 4% growth for semiconductors in 2005.

Mobile phone exports nearly doubled in 2004, boasting a growth rate of 44.1% to reach US$22.4 billion in total value. With demand rising in India and other emerging markets in Latin America, the Ministry projects 23% growth for mobile phones in 2005.

Digital TV exports shot up by 33.6% in 2004 to reach a total of US$1.6 billion. STB exports didn't trail far behind at US$1 billion, with a growth rate of 27.6%. Korean digital TV makers have attained a competitive advantage with a high level of technological prowess, and with the proliferation of digital broadcasting proceeding across the globe at a rapid pace, digital TV exports for 2005 are expected to increase by 56% year-on-year.

As for the computing sector, exports of notebook PCs, CRT (Cathode Ray Tube) monitors, and printers fell by 62.5%, 60.9%, and 10% respectively year-on-year. Meanwhile, exports of LCD (Liquid Crystal Display) monitors grew by 23.4%, while hard disk drives grew by 46.8%. Collectively, they brought in nearly US$11.4 billion in revenue. LCDs are forecast to grow by 16% in 2005, less than would otherwise be the case given the persistent slide in prices brought on by a supply glut. The Ministry expects things to return to normal in the LCD sector after the first half of the year, once makers that are lagging behind begin to cut back on production. 

Overall, the Ministry issued a more conservative growth forecast for 2005. The Ministry called for 14% export growth in the IT sector, and placed its estimate for export value at US$85 billion.