"Semiconductor Recovery Pushes Korea's Share of Exports in Final Demand to 31.8%"

Bank of Korea Releases 2024 Input-Output Tables (Extended Tables)

Total Supply (= Total Demand) Hits KRW 7,113.6 Trillion in 2024, Up 4.6%

"Semiconductor Exports" Drive Sharp Increase in Export Share on Demand Side

In 2024, both the share of exports in Korea's total demand and final demand increased. This is mainly attributed to a strong recovery in the semiconductor market, which rebounded sharply from its sluggish performance the previous year, leading to a significant rise in exports. The proportion of production value added induced by exports also expanded.

Export and import cargo is piled up at the Busan Port Sinsundae Pier in Nam-gu, Busan. Photo by Yonhap News Agency

According to the “2024 Input-Output Tables (Extended Tables)” released by the Bank of Korea on September 21, 2024, the total supply of goods and services in the Korean economy (equal to total demand) reached 7,113.6 trillion won, up by 4.6% from the previous year. The share of total output (domestic supply, 85.0%) and imports (foreign supply, 15.0%) within total supply remained similar to the previous year. However, on the demand side, the proportion of exports increased significantly.

The share of exports in total demand rose from 14.7% in 2023 to 16.1% in 2024. Likewise, the share of exports in final demand increased from 29.4% in 2023 to 31.8% in 2024. This reflects a substantial increase in exports of computers, electronic, and optical devices, including semiconductors. As a result, the export rate also climbed from 17.3% to 19.0%, and the share of external transactions expanded from 29.6% to 31.1%.

The value-added ratio increased for the second consecutive year, reaching 42.0% in 2024, largely owing to higher operating surpluses in exported manufactured goods. The import dependence ratio (13.3%) continued its decline as imported raw material prices remained low.

The share of manufactured goods in total value-added rose from 25.0% to 26.0% in 2024, while the share of the service industry declined from 65.4% to 64.1%.

Bu Sangdon, Head of the Input-Output Team at the Economic Statistics Department 2 of the Bank of Korea, stated, “Even this year, semiconductor exports are continuing to increase sharply, so the trend of rising shares for exports and manufacturing in Korea’s industrial structure is expected to strengthen.”

The share of services among intermediate goods also increased. In 2024, led by wholesale and retail, transportation, and producer services, the share of services used as intermediate goods rose from 35.4% in 2023 to 36.4% in 2024. Producer services include information and communication, broadcasting, finance and insurance, real estate, professional, scientific & technical services, and business support services.

The export-induced share also rose. The export-induced share refers to the proportion of total production, value-added, and employment numbers across all industries that are directly and indirectly induced by exports from final demand. In 2024, the shares of production (32.7% to 35.1%), value-added (25.4% to 28.2%), and employment (20.7% to 22.2%) induced by exports in final demand all increased, whereas the shares induced by consumption and investment both decreased.

In 2024, the total number of full-time equivalent employees decreased by 28,000, from 25.99 million to 25.96 million, as the number in the construction and agriculture, forestry, and fisheries sectors fell, while manufacturing remained at a similar level to the previous year. The full-time equivalent employment index measures the amount of labor actually used in production by converting the working hours of part-time employees to the average working hours of full-time employees.

By employment type and gender, the proportion of regular employees (61.0% to 61.3%) and women (40.5% to 40.8%) both increased. By sector, the share of services rose from 71.7% to 72.0%.

The input-output tables consist of an input-output table, a supply table, and a use table. They are statistical tables that record the production and disposal (consumption, investment, export, etc.) of goods and services in Korea in matrix form, and are useful for analyzing economic structures as well as the ripple effects between industries on production and employment.

This content was produced with the assistance of AI translation services.