South Korea recorded a trade deficit of $47.5 billion for 2022, official data from the customs agency showed.

January exports fell $46.3 billion, or 16.6% – declining more than expectations for a drop of 11.3%.

"The widening trade deficit seen in January is widely seen to be due to seasonal factors such as an import in energy exports for the winter, as well as a sudden drop in chip prices, leading to a worsened picture," Choo said.

This comes as global smartphone shipments dropped 18% to 296.9 million units in the final quarter of 2022 as demand fell, according to Canalys.

"Despite showing some stabilization in Q3, Asia Pacific and Europe suffered their worst Q4 performances in history in 2022," said Canalys analyst Sanyam Chaurasia, adding shipments in Asia-Pacific fell by 8% in 2022 despite resilience throughout the year.

On Tuesday, chipmaker Samsung Electronics reported its worst quarterly profit in eight years, while SK Hynix also posted a record loss for the period.