Annual growth in South Korean semiconductor exports will probably slow sharply in the first quarter of 2006, an industry survey showed on Monday, in line with sluggish global demand for personal computers.
However, annual growth in the country's automobile exports will probably accelerate in the first three months of 2006, the survey by the Federation of Korean Industries showed.
The federation forecast semiconductor exports to grow 2.2 percent in the first quarter of 2006 from a year earlier, down from an estimated fourth-quarter jump of 14.7 percent. But it said automobile exports would probably rise 6.6 percent in the first quarter from a year earlier, up from 1.1 percent gain in the fourth quarter from a year earlier.
Automobiles and semiconductors together account for a fifth of total exports by South Korea, home to Samsung Electronics, the world's top memory chip maker, and Hyundai Motor Co, the world's seventh-biggest car maker.
"We think global demand for personal computers would remain subdued for the time being and falling export prices of DRAM chips might weigh on overall exports," said Sohn Hoon-jeong, a manager at the federation's industry research division.
"However, the recovery in domestic demand will probably accelerate in the first quarter of next year, coupled with continued strength in exports, and bolster the economic recovery," she said.
Helped by a launch of several new models, automobile sales within South Korea were forecast to grow 9.5 percent from a year earlier in the first quarter of 2006, accelerating from 8.7 percent annual growth in the fourth quarter from October to December.
The federation said in a statement that companies in 10 of 13 industries surveyed expected to see sales at home grow faster in the first quarter of next year from a year earlier, compared with the fourth.
Exports by South Korea, Asia's fourth-largest economy, have held up better than expected by the market this year, even after a robust 31 percent jump in 2004.
Domestic demand, which accounts for more than half of the country's economy, has also improved, bolstering government optimism about a broader economic recovery next year.
The central bank forecasts the economy to grow 5.0 percent in 2006, up from an estimated 3.9 percent rise this year.
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