Minister of Trade, Industry and Energy Bang Moon-kyu, front left, visits a cargo terminal at Incheon International Airport, Monday. Yonhap Semiconductors regain luster as batteries struggle amid lukewarm EV demand By Lee Min-hyung A recovery in chip sales is expected to lead Korea’s export rebound in 2024, after the nation suffered annual trade deficits for the past two years amid falls in prices and demand for semiconductors. Given the reviving sentiment in the global chip industry, the outlook remains promising for the nation to achieve a much-awaited trade surplus this year, data showed Monday. According to the Ministry of Trade, Industry and Energy, exports were on course for gradual recovery in the latter half of 2023. Exports in December came at $56.7 billion (73.65 trillion won), up 5.1 percent from the previous year. This was a rise for the third consecutive month, and the largest figure in 17 months since July 2022. Driven by the exports rebound, the trade record is also extending its winning streak, with Korea’s trade balance posting surpluses for the past seven consecutive months. This was powered by a recovery of chip exports, which soared by 21.8 percent in December from the year before, the largest monthly growth last year. Chips account for the largest portion of Korea’s exports. Against this backdrop, Minister of Trade, Industry and Energy Bang Moon-kyu visited a cargo terminal at Incheon International Airport and conducted an on-site inspection of shipment of semiconductors to be exported to the United States, Monday, as his first official visit of the New Year. “Even if we still face external uncertainties, triggered by high interest rates here and abroad and deepening competition between the United States and China, we will go all out to support chip exports so that they can drive economic growth,” Bang said. Large-cap chip stocks are also on a path for a gradual price recovery. According to the Korea Exchange, shares of SK hynix regained their glory as the nation’s second-most-valuable firm by market capitalization on the last trading day of last year, overtaking LG Energy Solution for the first time in almost two years. Data from the exchange operator also showed shares of Samsung Electronics soared by 41.95 percent in 2023 from the previous year. The figure is more than twice as high as the average growth rate of the benchmark KOSPI during the same period. Shares of the SK affiliate also surged by 86.92 percent on investors’ reviving confidence. But once-red-hot battery stocks are unlikely to extend their recent momentum for a rally, as the global electronic vehicle (EV) market is entering a phase of low growth this year with less customers willing to spend big on high-priced EVs amid prolonged high interest rates.
