South Korea’s technology product exports have experienced a slowdown for the second consecutive month, signaling a potential peak in global demand, according to government data. The latest figures reveal that exports, predominantly driven by the information and communication technology sector, rose by 24% in September compared to a year earlier, a decrease from 28.5% growth recorded in August, as reported by the trade ministry on Monday.
Shipments of dynamic random access memory (DRAM), South Korea’s most lucrative product, increased by 57.1%—the slowest growth rate since December of the previous year. Additionally, prices for both DRAM and NAND flash memory saw a decline last month, as indicated by data from Dramexchange provided by the ministry. The robust demand for memory chips has significantly contributed to South Korea’s economy, which has outpaced earlier growth projections this year, largely driven by advancements in global artificial intelligence.
With major companies like Samsung Electronics Co. and SK Hynix Inc. as leading contributors to its economic performance, South Korea’s reliance on technology exports is substantial. The country supplies a range of high-tech products, including smartphones, computer displays, rechargeable batteries, and various components used in cutting-edge consumer goods.
Technology exports represent approximately one-third of South Korea’s overall export volume. Although the growth rate in this sector is showing signs of cooling, economists and policymakers maintain that a rapid decline is unlikely, which should help sustain the economy’s momentum into the next year. This optimism has supported the Bank of Korea’s decision to maintain its benchmark interest rate at an elevated level, cutting it to 3.25% just last week.
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