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South Korea’s Information Technology Industry Infrastructure Expected to Be Strongly Backed by the Nation in 2011
South Korea’s trade surplus in the field of its information technology (IT) reached a record high of US$78.2
billion in 2010 mainly due to strong overseas demand, especially for semiconductors and display panels.
The large surplus could have been recorded by a 27.3 percent year-on-year jump in exports that reached an
unprecedented $154 billion for the whole year since the introduction of new IT appliances such as smartphones
helped semiconductor exports to soar 63.4 percent to $ 50.7 billion.
The fully manufactured semiconductors, the largest single export item for South Korea last year, exceeded ship
exports of $49.7 billion and automobile shipments of $ 35.4 billion.
Display panels, another key component in IT products, rose 27.4 percent to just under $33.8 billion, making
them the fourth-largest export item.
Exports of TVs increased 42.6 percent to $7.4 billion thanks to solid gains in upper-end LED and threedimensional
(3D) sets, with overseas sales of refrigerators, washing machines, air conditioners and battery cells all
increasing compared to those of the year before.
Exports of mobile phones, however, contracted 13.7 percent to $24.7 billion although numbers for smartphones
skyrocketed 216.7 percent to $6.5 billion.
According to the reliable official data, despite a decrease in outbound shipments, the nation’s global market
share in mobile phones remained at 31 percent in the third quarter, unchanged from the whole of the previous
year.
As for imports, South Korea bought more computers, mobile phones and IT-related parts from abroad. Mobile
phone imports that rose 37.2 percent to $4.3 billion were caused by demand for foreign smartphones, such as
Apple’s iPhone.
By country, exports to China, including Hong Kong, shot up 38.3 percent on-year to $69.3 billion, with those to
the United States, Japan and the EU all increasing up by more than 10 percent.
The nation’s IT products shipped to the United States increased 15.9 percent to $18.5 billion, with exports to
Japan and the EU reaching $7.8 billion and $18.7 billion, respectively, for the year.
IT exports in December in 2010 increased 15.6 percent to $13 billion, with imports topping $6.9 billion, a gain of
22.2 percent, for a monthly trade surplus of $6.1 billion.
The sharp rise in both inbound and outbound products reflects a worldwide global economic recovery that has
fueled demand.
It is expected that export gains will be reaching 5-10 percent to over $160 billion, with exports of tablet PCs and
smartphones are facilitating the move.
South Korea plans to spend 1.22 trillion won (US $1.04 billion) in this year to build up its information
technology (IT) industry infrastructure.
The allocated money for the industry, up by 11.4% from 2010, scheduled to be used in areas of research and
development in IT convergence, light emitting diodes, three-dimensional (3D) devices and new mobile
communication applications.
Amid the increasingly intense competition in the global market in the field, the nation’ government further
stresses the importance of support for the cutting-edge industries, such as IT, for building up capability leading the
market in global market.
According to the official data, clear indications of recovery of the field in the domestic market, including a
sharp rise in exports of software, system semiconductors and personnel computers and a large number of jobs have
been created.
For this year, the nation will be aiming to raise IT production by at least 5 percent and IT exports by 10 percent,
respectively, surpassing the nation’s industry expectation - higher than the 3-3.8 percent gain in production and
5.9-9.8 percent rise in exports.
Meanwhile, the worldwide IT industry is expected to grow by 3.5% more than the previous year, fueled by
solid market demand for such products as smartphones and tablet PCs.
Industry Trends
South Korea’s Information Technology
Industry Infrastructure Expected to Be
Strongly Backed by the Nation in 2011
February
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