In a recent interview, a representative from South Korea’s Ministry of Trade discussed the slowing growth of technology product exports, marking the second consecutive month of decline. This trend suggests that global demand may be peaking and shifting downward. According to government data, both the shipment and pricing of memory chips are losing momentum.
The ministry reported that South Korea’s technology export growth rate decreased to 24% in September, down from 28.5% in August. Notably, the country’s most profitable product, DRAM, saw its shipment volume increase by 57.1%, the lowest growth rate since December of last year.
Citing information from Dramexchange, the ministry noted that prices for both DRAM and NAND flash memory fell last month. The demand for memory chips, fueled by the global advancement of artificial intelligence (AI), has contributed to a faster-than-expected economic growth for South Korea this year.
Samsung Electronics and SK Hynix are major players in South Korea’s technology export sector. In addition to chips, they supply smartphones, computer monitors, charging batteries, and components used in various advanced consumer products worldwide.
Technology products account for about one-third of South Korea’s total exports. Economists and policymakers believe that while there is a cooling trend in tech exports, it is not severe enough to cause immediate concerns. Consequently, they forecast that economic growth momentum will continue into next year. This optimism has led the Bank of Korea to maintain high benchmark interest rates until recently, when it lowered the rate to 3.25% just last week.
