Mid-June Exports Down 7.5%... Outlook Darkened by Fear of Second COVID-19 Wave (Comprehensive)

KCS Announces Export-Import Performance on 22nd
Average Daily Exports Down 16.5%
Cars 36.7%↓ Petroleum Products 40.9%↓

[Image source=Yonhap News]

[Asia Economy Reporters Kim Bo-kyung and Moon Chae-seok] Due to the ongoing impact of the novel coronavirus infection (COVID-19), export value from June 1 to 20 decreased by 7.5% compared to the same period last year. Rising concerns over a second pandemic (global outbreak) are further darkening the outlook for our exports.

According to the export-import status (customs clearance provisional figures) announced by the Korea Customs Service on the 22nd, export value from June 1 to 20 recorded $25 billion, down 7.5% ($2.04 billion) compared to the same period last year.

During this period, the number of working days totaled 16, which is 1.5 days more than last year. Considering the working days, the average daily export value decreased by 16.2% ($310 million) compared to the same period last year, reaching $1.56 billion. Compared to the average daily export value from June 1 to 10, which fell by 9.8% year-on-year, the actual export performance appears to be worsening progressively.

This is due to the prolonged COVID-19 crisis causing economic downturns, leading to continued declines in automobile and home appliance exports, while major markets such as the United States and the European Union (EU) have yet to recover. An official from the Ministry of Trade, Industry and Energy stated, "Although oil prices have recently risen, exports of petroleum products and automobile parts remain at a dismal level compared to last year," adding, "We expect the overall export performance for June to be somewhat worse."

By export item, semiconductors (2.6%), ships (35.5%), and wireless communication devices (10.9%) increased, but passenger cars (-36.7%), petroleum products (-40.9%), and home appliances (-14.9%) decreased. By country, exports to China (14.5%) and Singapore (16.7%) increased, while those to the United States (-10.0%), EU (-13.9%), Vietnam (-8.0%), Japan (-16.0%), and the Middle East (-19.0%) decreased.

Recently, the emergence of COVID-19 cluster infections in Beijing, China, has raised concerns about a second pandemic, increasing uncertainty in the export market. Professor Kang In-soo of Sookmyung Women's University said, "In the United States, daily COVID-19 cases exceed 30,000, and European countries have not been able to completely block the infectious disease," adding, "With confirmed cases in Beijing, it is difficult to be assured against the possibility of a shutdown."

As clouds gather over the global economic outlook, there are also predictions that conditions unfavorable for the revival of our exports will continue. Professor Jung In-gyo of Inha University said, "Automobiles are a representative durable good, and future economic outlook greatly affects demand for this item. With a bleak economic forecast, how can cars be expected to sell?" He added, "Even if consumption recovers in the United States and Europe, the impact of COVID-19 will intensify further."

Meanwhile, imports during this period amounted to $24.5 billion, down 12.0% ($3.36 billion) compared to the same period last year. By import item, semiconductors (1.0%), semiconductor manufacturing equipment (113.1%), and precision instruments (4.1%) increased, but crude oil (-63.3%), gas (-19.2%), and wireless communication devices (-13.8%) decreased.

By country, imports from China (0.7%), the EU (10.2%), and Taiwan (7.4%) increased, while those from the United States (-6.2%), Japan (-7.3%), the Middle East (-50.6%), and Vietnam (-0.7%) decreased.

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