[Editorial] The $1 Trillion Export Era... Semiconductor Reliance Is a Challenge, but There Is Hope

Import and export cargo stacked at the Sinseondae terminal at Busan Port. Yonhap News Agency

Cumulative exports through October this year reached $930 billion, bringing the country within sight of breaking the $1 trillion mark in annual exports. Half a century after the entire nation celebrated achieving $10 billion in exports in 1977, South Korea is now on the verge of reaching 100 times that figure. This proud achievement is the result of the combined efforts of business leaders and researchers who opened up global markets, along with workers on production lines.

The driving force is, as ever, semiconductors. Semiconductor exports in October surged 259.4% from a year earlier, accounting for about 73% of the total increase in exports. It is understandable that some have voiced concern about the South Korean economy’s heavy reliance on semiconductors. Even so, this record cannot be seen as an achievement attributable to semiconductors alone. The export figures also contain welcome signs of progress in other industries.

October exports excluding semiconductors were also up 34% from a year earlier. Eighteen of the 20 major export items posted growth. A range of industries, including automobiles, cosmetics and biohealth, contributed to the increase. Exports by small and medium-sized enterprises in the third quarter of this year also reached $33.4 billion, a record high for that quarter. Semiconductors led the way to the record, but other sectors are also showing renewed vitality. This points to the potential for broadening the foundation of South Korea’s exports.

What matters is extending this success to more companies and industries. Many small and medium-sized enterprises struggle to secure overseas certifications and distribution channels or to market their products locally, even when they have excellent technology and products. The government should help them enter new markets and secure stable customers. It should also step up support with local market information, financing and logistics so that initial deals lead to sustained exports. The practical, national-interest-focused diplomacy pledged by President Lee Jae-myung should also focus its efforts on lowering trade barriers and expanding opportunities for companies to enter overseas markets.

South Korea’s heavy reliance on semiconductors remains a challenge to address. Nor does an increase in export value necessarily mean that every industry has become more competitive. That is why the current boom should be used as an opportunity for other industries to make a leap forward. We hope this record will mark the beginning of a new wave of export powerhouses.

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