Global demand for tech-products shrinks

For the first time in more than two years, South Korea’s technology exports witnessed a decline in the month of July. According to the data released by Trade Ministry in July 2022, a decline of 0.7% yoy in exports of information and communication products was recorded, after a 6.8% gain in the preceding month. The decline was led by memory chips (produced by companies like Samsung Electronics) with a 13.5% drop. However the overall exports of semiconductor increased by 3.1%.

Technology exports constitute almost one third of South Korea’s overall exports. Country-wise export data showed a decline of 8.2% in exports to China. Exports to US also declined by 9.2%, whereas the exports to the European Union increased by 12.9%. The drop in South Korea’s exports of technology products in July indicates a gradual slowdown in global demand. During the pandemic period, the global demand for semiconductors, computers and communications devices saw a big upswing, as many people across the world switched over to ‘remote work and education’ as a precaution to avoid the  infection.

As the global economy and financial systems are coming out from the clasp of the coronavirus, people are now moving out more and are engaged more in physical meetings and interactions, hence there is less demand for tech products. This is more evident from the Trade Ministry’s data that reported a fall in South Korea’s smartphone sales by 29.2% and drop in exports of computers and auxiliary devices by 21.9% in July from a year earlier. A drop of 4.7% was also seen in display exports. Decline in global demand is raising concerns throughout the world.