Semiconductor boom doubles large firms' exports, top 10 companies claim 61% share

Surging semiconductor exports pushed large companies' export earnings in the third quarter of this year to more than double the level recorded a year earlier. As export growth concentrated among a handful of large firms, the top 10 exporters in South Korea accounted for more than 60 percent of total exports for the first time. Mid-sized firms and small and medium-sized enterprises also posted export gains, but their growth lagged far behind that of large conglomerates.

According to trade statistics by company type for the third quarter of this year — released Tuesday by the Ministry of Statistics and the Korea Customs Service — total exports for the quarter reached $318.6 billion, up 72.3 percent from a year earlier.

Large companies' exports rose 103.5 percent from a year earlier, while mid-sized firms and small and medium-sized enterprises grew by 12.8 percent and 10.7 percent, respectively — meaning large firms' export growth rate was roughly eight to 10 times that of their smaller counterparts.

The pace of large companies' export growth has accelerated throughout this year. After rising 10.4 percent in the fourth quarter of last year, the growth rate jumped to 53.9 percent in the first quarter of this year, expanded further to 81.7 percent in the second quarter, and surpassed 100 percent in the third quarter. Expanded exports by major chipmakers such as Samsung Electronics and SK hynix are seen as the primary driver of overall large-company performance.

By contrast, mid-sized firms' export growth edged up from 10.8 percent in the second quarter to 12.8 percent in the third, while small and medium-sized enterprises saw their growth rate slip from 12.7 percent to 10.7 percent over the same period.

Breaking down exports by product category, large companies expanded shipments of IT components including semiconductors and of mineral products, but saw declines in durable consumer goods. Mid-sized firms were led by chemical products, non-durable consumer goods and IT components, while small and medium-sized enterprises grew mainly on the strength of machinery and chemical products.

The concentration of export earnings among large firms also intensified rapidly. The top 10 exporters accounted for 60.9 percent of total exports, up 20.3 percentage points from the third quarter of last year. After crossing the 50 percent mark for the first time in the first quarter of this year, the share surged past 60 percent in just two quarters. The top 100 exporters held a combined share of 79.4 percent, up 11.5 percentage points from a year earlier.

A similar polarization emerged when exports were broken down by workforce size. Companies with 250 or more employees posted export growth of 86.8 percent, and firms with 10 to 249 workers grew by 16.2 percent. Micro-enterprises with nine or fewer employees, however, saw their exports fall 1.7 percent.

Among industries, mining and manufacturing recorded the highest export growth rate at 82.8 percent, followed by other industries at 10.4 percent and wholesale and retail trade at 5.1 percent. By goods type, capital goods exports surged 109.0 percent, driven by expanded shipments of semiconductors, IT devices and precision machinery, leading overall export growth. Raw materials exports rose 26.5 percent, while consumer goods exports fell 1.7 percent.

Meanwhile, imports in the third quarter totaled $203.1 billion, up 25.0 percent from a year earlier. Large companies and mid-sized firms increased their imports by 29.5 percent and 29.2 percent, respectively, while small and medium-sized enterprises grew by 12.5 percent. By industry, mining and manufacturing posted the highest import growth at 29.7 percent, followed by other industries at 28.9 percent and wholesale and retail trade at 13.3 percent.