ICT exports in South Korea up 12 pc in Oct over AI server chips

Seoul, Nov 13
South Korea's exports of information and communication technology (ICT) products rose 12.2 per cent in October from a year earlier, data showed on Thursday, helped by robust shipments of semiconductors for artificial intelligence (AI) servers.

Outbound shipments of ICT products reached US$23.3 billion last month, according to data compiled by the Ministry of Science and ICT. It marks the highest export volume for any October, reports Yonhap news agency.

Imports, meanwhile, fell 2.9 percent over the period to $12.9 billion, resulting in a trade surplus of $10.3 billion.

Exports of semiconductor products jumped 25.4 percent on-year, buoyed by strong demand for high-end chips used in AI servers, coupled with an increase in global memory chip prices.

Exports of communication equipment rose 2.5 percent on robust demand from Vietnam and India, the ministry said.

Shipments of display products, however, fell 8.8 percent due to a decrease in global prices. Exports of mobile phones dropped 11.8 percent amid weak demand for parts from China.

By destination, exports to the United States climbed 5.8 percent, and those to China, including Hong Kong, gained 4.9 percent.

Meanwhile, foreign investors remained net buyers of South Korean securities in October amid a strong stock market, though their net purchases shrank from a month earlier due to profit-taking, central bank data showed on Thursday.

Offshore investors bought a net US$2.29 billion worth of local stocks and bonds last month, following $9.12 billion in net purchases in September, according to data from the Bank of Korea (BOK).

By asset type, foreigners purchased a net $3.02 billion worth of local stocks, extending their buying streak to a sixth month, while they sold a net $720 million worth of bonds, swinging from $4.78 billion net buying the previous month.

"Stock-related funds posted a net inflow for the sixth consecutive month, supported by solid global investment sentiment toward artificial intelligence (AI), though its growth slowed due to profit-taking following recent stock gains," a BOK official said.

"Bond funds turned to a net outflow as public institutions continued to sell short-term bonds," he added.

In October alone, the Korea Composite Stock Price Index (KOSPI) jumped 19.9 percent. The data also showed that the Korean won weakened markedly against the U.S. dollar in October, falling to an average of 1,424.4 won from September's 1,402.9 won.

Daily fluctuations in the won-dollar exchange rate widened, averaging 5.6 won in October, compared with 3.9 won a month earlier, the data showed.