Despite 'Corona', Exports Turn 'Positive' After 15 Months... "Thanks to Semiconductor DRAM Price Increase" (Update)

February Exports Up 4.5% Year-on-Year
Daily Average Exports Negative for 15 Consecutive Months

COVID-19 Uncertainty Persists
February Exports to China Down 6.6%
Ministry of Industry "Doing Our Best to Minimize Impact"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Our exports turned positive for the first time in 15 months. Despite significant concerns about declines due to the novel coronavirus disease (COVID-19), exports showed positive growth. However, the average daily export value, excluding the three additional working days, was negative.

According to the "February 2020 Export-Import Trends" announced by the Ministry of Trade, Industry and Energy on the 1st, last month's export value (customs clearance basis) was $41.26 billion, an increase of 4.5% compared to the same month last year. This marks the first positive growth in our exports in 15 months.

The average daily export value, excluding the impact of three additional working days due to the Lunar New Year holiday, was $1.834 billion, down 11.7% compared to the same month last year. Although the average daily export value turned positive in January for the first time in 14 months, it returned to negative territory.

However, export volume increased by 7.3%, marking the largest increase in 1 year and 1 month since January last year.

The semiconductor sector increased by 9.4%, significantly contributing to the positive turnaround after 15 months. The Ministry explained that this was due to steady growth in data center server demand and the fixed price of DRAM rising for two consecutive months.

Last month, the fixed price of DRAM was $2.88. It had fallen from $8.19 in September 2018 to $2.81 during October to December last year, but then rose to $2.84 in January and $2.88 last month.

Meanwhile, imports last month increased by 1.4% year-on-year to $37.15 billion. The trade balance recorded a surplus of $4.12 billion, marking 97 consecutive months of surplus.

Uncertainty due to the spread of COVID-19 is still considered unresolved. This is because total exports to China decreased by 6.6%. The average daily export value dropped by as much as 21.1%.

An official from the Ministry of Trade, Industry and Energy stated, "We will do our best to minimize the impact of COVID-19 on exports and maintain export momentum."

This content was produced with the assistance of AI translation services.