Korea to earn $115bn from IT exports

South Korea's huge investment in LCD production continues to pay off

South Korea will earn $115.6bn from exports of IT products this year, according to newly released government predictions.

The huge technology output is helping the country to prop up its international trade balance, despite pain caused by oil prices, competition from cut-price Chinese manufacturers and exchange rate shifts.

IT exports rose more than 14 per cent in the first half, on strong sales of hi-tech gadgets such as mobile phones and LCD screens.

However, while IT exports during the first half earned $68.2bn for South Korea, IT imports rose more than 16 per cent to $38.5bn.

The country's output of chips and other semiconductor products was worth $17.5bn in the first half of the year and is predicted to reach $23.7bn in the second half, a year-on-year rise of over 17 per cent.

Chip production is expected to show an increase of 5.7 per cent over the full year, as production value exceeds $40bn for the first time, according to the Ministry of Knowledge Economy.

Exports of mobile phones are expected to grow more than 27 per cent during 2008, according to official forecasts, as Samsung and LG ramp up production.

Mobile phone exports will be worth $38.7bn, more than a third of the country's IT output.

South Korea's huge investment in LCD production continues to pay off. Displays generated $10bn in the first half, and are expected to rake in more than $20bn by the end of 2008, according to Korea's Electronic Times Internet Co.