A warm wind from semiconductors and industrial reorganization: New light and dark spots in the Korean economy > News

The Korean economy's export prices have maintained an upward trend for 11 consecutive months due to the explosion in demand for memory semiconductors due to increased investment in AI, proving solid growth. In particular, the export price index in the computer and electronic/optical equipment sectors reached its highest level since 2010, suggesting that the supply-demand imbalance in which semiconductor supply cannot keep up with demand is prolonging. According to the Bank of Korea's statistics, the surge in prices of key components such as DRAM and flash memory is leading the increase in exports, and this is not simply a temporary phenomenon, but is in line with the global trend of building AI infrastructure. On the other hand, due to the decline in international oil prices, import prices fell for two consecutive months, resulting in positive results in improved terms of trade. As a result, the increase in export prices overwhelms the increase in import prices, and the economic value that Korea can obtain from one unit of export has grown even more.

The boom in exports centered on semiconductors is promoting changes in the overall industry ecosystem. The government invested a budget of KRW 800 billion to begin full-scale development of 'K-on-device AI' technology and established an 'AI Semiconductor Alliance' that connects large companies such as Samsung Electronics to fabless and design asset companies. This is a strategic intention to solve the difficulties faced by domestic design companies in securing customers and to install domestically produced chips in various industries such as self-driving cars, home appliances, robots, and defense. In addition, as in the case of Hanmi Semiconductor's strategic investment in Space This change in the ecosystem shows the desperate and bold steps of the Korean industry to move beyond being a memory semiconductor powerhouse and become a technology powerhouse encompassing system semiconductors and AI computing capabilities.

Behind the flashy semiconductor report card, there are also realistic pains in the industrial field. The recent conclusion of negotiations on transportation costs for ready-mixed concrete in the metropolitan area and the normalization of key national semiconductor construction sites such as Samsung Electronics' Pyeongtaek Campus and SK Hynix's Yongin Cluster were events that gave the industry a huge breath of fresh air. The conflict between labor and management of ready-mixed concrete is more than just an issue of increased transportation costs; it is an example of how sophisticated cooperation is required to build large-scale infrastructure. In addition, as seaweed production is threatened by rising sea temperatures due to climate change, the food industry is seeking survival strategies by commercializing technology to grow seaweed on land rather than in the sea. In this way, despite environmental constraints and cost pressures, our companies are finding new breakthroughs through technological innovation and completely reorganizing the paradigm of traditional industries.

The external economic environment is also at an important inflection point. The possibility of an agreement between the United States and Iran to end the war is expected to alleviate upward pressure on international oil and raw material prices, which is expected to act as a positive signal for stabilizing import prices in the second half of the year. However, as geopolitical risks in the Middle East have not been completely resolved, raw material prices and exchange rate volatility are still key variables that our economy must carefully monitor. Although external growth is clear, with the trade balance recording a surplus for 16 consecutive months and exports exceeding $80 billion, the decline in exports of some items such as passenger cars and auto parts is also a warning light that we should not stop diversifying our industry. In the end, the biggest challenge for our economy today is to precisely manage the changing international situation and the instability of the energy supply chain, while based on a reliable weapon called semiconductors.