Korea’s exports on the rise following 12-month downward streak

[Image source: Pixabay]

South Korea witnessed a promising uptick in exports this month, signaling the potential for continued positive growth soon. The trade balance, however, recorded a deficit, with imports surpassing exports.

According to the Korea Customs Service on Saturday, the nation’s exports in value during the first 20 days of October was $33.84 billion, marking a 4.6 percent increase year-on-year. This figure is preliminary and calculated based on customs clearances.

The number of working days during the 20-day period was 13 days, or 0.5 days less than last year’s 13.5 days. Despite the slightly lower number of working days, the daily average export value rose by 8.6 percent.

The monthly export value had been on a decreasing trend over the past year from October 2022 until September 2023. If October’s exports return to a growth trend, as the government is forecasting, it will be the first in 13 months since September 2022, when the figure stood at 2.3 percent.

By product category, exports of petroleum products grew by 14.5 percent, passenger cars by 24.7 percent, ships by 63 percent, and wireless communication devices by 6.1 percent. But semiconductor exports fell by 6.4 percent compared to a year ago, marking a 14-month decline in monthly terms.

In terms of export destinations, exports to the United States grew by 12.7 percent, Vietnam by 0.6 percent, and Japan by 20.0 percent, while exports to China fell by 6.1 percent, and those to the European Union fell by 1 percent. Exports to China have been on a downward trend for the past 16 months.

Imports during the first 20 days of this month increased by 0.6 percent to hit $37.59 billion. Imports of crude oil increased by 30.5 percent, petroleum products by 35.9 percent, and precision machinery by 8.9 percent, while semiconductor imports fell by 3.3 percent, gas by 30.9 percent, coal by 6.1 percent, and passenger cars by 5.8 percent.

By country, imports from Saudi Arabia and Australia increased by 17.3 percent and 18.5 percent respectively, while imports from China, the United States, and the EU decreased by 4.5 percent, 9 percent, and 3.2 percent respectively.

The trade balance expanded to $3.75 billion year-on-year, up from $480 million during the same period a year before. Due to the nature of monthly exports focusing on major items at the end of the month, there is a possibility that the monthly trade balance has improved from the previous month. The monthly trade balance recorded a surplus for the past four months until September 2023.

The trade balance with China during the first 20 days of this month recorded a deficit of $1.23 billion, while the cumulative trade deficit for 2023 to date was $23.44 billion.