"Strong Performance Despite COVID-19" Exports Up 10% from 1st to 20th... March Positive Growth Remains Uncertain (Comprehensive)

Korea Customs Service Announces Export and Import Data for March 1-20... Working Days Increased by 1.5 Days
Semiconductor Exports Up 20.3% Due to Server DRAM Demand... Passenger Cars Up 13.7%
Ministry of Trade, Industry and Energy: "March Impact of COVID-19 Limited but Uncertainty High"

[Asia Economy Reporter Kim Bo-kyung] Despite the impact of the novel coronavirus infection (COVID-19), South Korea's export value from the 1st to the 20th of this month increased by 10% compared to the same period last year. However, due to growing external uncertainties caused by COVID-19, it remains unclear whether the total export value for March will record a positive figure.

According to the Korea Customs Service on the 23rd, the export value from March 1 to 20 (provisional customs clearance basis) was $30.7 billion, an increase of 10.0% ($2.78 billion) compared to the same period last year. Despite concerns over global economic slowdown and weak demand due to the adverse effects of COVID-19, exports recorded a positive growth.

However, the number of working days during this period was 16, which is 1.5 days more than last year. The increase in working days significantly influences the recovery of export indicators. Considering the number of working days, the average daily export value was $1.92 billion, a decrease of 0.4% (about $10 million) compared to the same period last year. This seems to reflect the impact of COVID-19 to some extent.

Regarding this, an official from the Ministry of Trade, Industry and Energy stated, "If the export performance itself is poor, even with an increase in working days, it can still record a negative figure. So far, it is evaluated as holding up well. There is a time lag between export contracts and shipments, so the impact of COVID-19 is expected to be limited until March."

[Image source=Yonhap News]

In particular, exports of semiconductors, South Korea's key product, increased by 20.3% compared to the same period last year. This is because the demand and prices for server DRAM rose as non-face-to-face work such as telecommuting and online education expanded due to COVID-19. Investments by global server companies such as Microsoft, Apple, Google, and Amazon are increasing, and the demand for DRAM from Chinese cloud companies like Tencent and Alibaba is also surging. This offsets the impact of the reduced demand for mobile DRAM caused by the COVID-19 aftermath.

Other export items such as passenger cars (13.7%), petroleum products (11.4%), and wireless communication devices (26.6%) increased, while ships (-49.6%) and liquid crystal devices (-16.7%) decreased.

Looking at exports by country, most major countries showed increases: China (4.9%), the United States (27.2%), the European Union (EU, 13.5%), Vietnam (12.1%), Japan (30.5%), Hong Kong (33.6%), and the Middle East (18.3%). An official from the Ministry of Trade, Industry and Energy explained, "Some automobile factories that were shut down last month due to the suspension of wiring harness production in China have now all normalized, leading to a recovery in passenger car exports."

However, whether the total exports for March will record a positive figure remains uncertain. The official said, "The COVID-19 situation is so uncertain that we need to observe it further." Exports in February increased by 4.5% compared to the previous year, marking a positive turnaround after 15 months. The cumulative export value from January 1 to March 20 this year was $115.056 billion, an increase of 1.3% compared to the same period last year.

Meanwhile, imports from the 1st to the 20th of this month ($29.1 billion) increased by 5.9% ($1.63 billion) compared to the same period last year. Accordingly, South Korea recorded a trade surplus of $1.56 billion during the same period. Imports of semiconductors (13.6%), petroleum products (43.3%), and precision instruments (8.5%) increased, while crude oil (-2.6%), machinery (-6.3%), and coal (-19.4%) decreased. Imports from China (11.2%), the United States (1.3%), the EU (7.6%), Japan (2.4%), and Vietnam (9.4%) increased, while those from the Middle East (-0.9%) and Canada (-32.1%) decreased.

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