Exports by top 5 electronics firms triple amid semiconductor boom, hitting 53% of total

Exports by the top five electrical and electronics manufacturers surged more than threefold over the past year in the third quarter, driven by a semiconductor supercycle, with the group accounting for more than half of South Korea's total exports.

By contrast, top firms in traditional export industries — including transport equipment such as automobiles and ships — posted declining figures.

According to the Korean Statistical Information Service (KOSIS), the top five electrical and electronics manufacturers recorded combined exports of $167.86 billion in the third quarter (July–September), up 230.9 percent from $50.74 billion in the same period last year.

The sector encompasses manufacturers of electronic components, computers and communications equipment, as well as makers of medical and precision instruments and electrical equipment.

The five firms' exports accounted for 52.7 percent of South Korea's total third-quarter exports of $318.63 billion.

In the transport equipment manufacturing sector — another pillar of South Korean exports — top firms saw shipments fall. The top five transport equipment manufacturers posted exports of $19.54 billion in the third quarter, down 6.2 percent from $20.83 billion a year earlier.

The decline reflects a combination of factors, including strikes at some automakers and fewer working days after the chuseok holiday shifted from October last year to September this year.

The sector's share of total exports also fell, dropping from 11.3 percent to 6.1 percent over the year. The transport equipment manufacturing sector includes automobile and trailer manufacturers as well as makers of ships, railway vehicles and aircraft.

The export gap between the top five firms in the two sectors widened sharply — from 2.4 times ($29.91 billion) in the third quarter of last year to 8.6 times ($148.32 billion) in the third quarter of this year.

Export concentration is rising across all industries. The top five firms across all sectors combined for exports of $174.38 billion in the third quarter, representing 54.7 percent of total exports. That share surpassed 50 percent for the first time in history in the second quarter, at 50.2 percent, and climbed a further 4.5 percentage points in a single quarter to set a new all-time high.

The top five firms accounted for $115.76 billion of the total $133.74 billion increase in exports in the third quarter, representing 86.6 percent of the overall gain.

The top five firms' contribution to total export growth has risen every quarter this year — from 81.7 percent in the first quarter to 84.3 percent in the second.