Exports of chips, cars tipped to extend their solid growth: report

Containers for export are loaded onto a ship docked at a port in Korea. Yonhap

Exports of semiconductors and automobiles are anticipated to maintain stable growth, according to a report Saturday, as major trade partners resume business activities amid the vaccination rollout to combat the COVID-19 pandemic.

"Buoyant global demand for chips has led to severe shortages in some areas, suggesting that exports will remain elevated for some time as customers scramble to replenish stocks," Alex Holmes, an economist at industry tracker Capital Economics, said in the report,

In March, outbound shipments of chips expanded 8.6 percent year-on-year to reach their highest level in 28 months, as global data centers expanded their servers, with the average price of semiconductors rising on the supply shortage.

The country's overall exports soared 45.4 percent year-on-year in the first 20 days of April, with those of semiconductors jumping 38.2 percent over the period.

Chips account for roughly 20 percent of South Korea's exports.

The automobile segment also posted a better-than-expected performance despite looming concerns over the global shortage of automotive chips.

"The disruption to automotive production lines elsewhere from global chip shortages may even be benefiting Korea's relatively-less-affected car industry, as consumers choose models with shorter lead times," the Capital Economics report said.

Over the first 20 days of April, exports of cars are estimated to have jumped 55 percent. Outbound shipments slid 13 percent in 2020 as the coronavirus pandemic dealt a harsh blow to consumer sentiment.

"Further ahead, some of the strength in exports is likely to fade as rapid vaccination rollouts in the rest of the world usher in a return to normality and a switch in spending patterns away from imported goods, particularly electronics," the report said.

"But in the short term at least, we expect export values to remain elevated," it added.

The government will announce the country's full monthly trade data May 1. (Yonhap)