Export Performance Up 1.2%... Minimal Impact of Semiconductors (Comprehensive)

Export Performance from 1st to 20th of This Month
Semiconductor Export Growth Rate 26.4%

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] Although semiconductor exports have increased by more than 26% since the beginning of this month, South Korea's export performance from the 1st to the 20th of this month only rose by 1.2% compared to the same period last year. It appears that the semiconductor illusion is directly reflected in the export results. The average daily export amount, excluding the effect of working days, increased by 4.5%.

According to the 'Export and Import Status from December 1 to 20' (provisional customs clearance basis) announced by the Korea Customs Service on the 21st, exports during this period amounted to $30.8 billion, an increase of 1.2% ($380 million) compared to the same period last year. The number of working days was 15.5 days, 0.5 days fewer than 16 days in the previous year. Considering the number of working days, the average daily export amount increased by 4.5% ($90 million) to $1.99 billion.

By item, semiconductor exports recorded a growth rate of 26.4%, supporting South Korea's exports. Looking at export performance from January to November this year, semiconductors accounted for nearly 20%. In addition, wireless communication device exports increased by 38.3%, and automobile parts rose by 3.5%. On the other hand, petroleum product exports fell by half (-49.9%), and exports of computer peripherals (-16.3%) and passenger cars (-3.5%) also decreased.

Exports to the three major markets? the United States (0.7%) and the European Union (EU, 14.6%)?increased, but exports to China (-2.3%), Japan (-10.2%), and the Middle East (-43.2%) declined. A Ministry of Trade, Industry and Energy official said, "The increase in semiconductor performance is positive, and it is expected to maintain strength for the time being."

Experts foresee that factors such as domestic and international COVID-19 vaccine distribution, economic recovery, the pace of exchange rate decline (won appreciation), and the possibility of a shipping logistics crisis will be variables affecting the export growth trend.

Professor Choi Namseok of the Department of Trade at Jeonbuk National University said, "It is positive that there are no signs that Samsung and SK's positions in the semiconductor market are weakening," but added, "We must be especially careful to prevent the global production network from collapsing due to the spread of COVID-19."

Professor Kang Insu of the Department of Economics at Sookmyung Women's University explained, "Even after the United States injected $900 billion in economic stimulus funds and the Federal Reserve (Fed) maintained zero interest rates, if exchange rate volatility remains continuously high as it is now, it could negatively affect exports."

An official from the Ministry of Trade, Industry and Energy said, "Among COVID-19 vaccines, exchange rates, and logistics, COVID-19 is judged to be the most important variable," adding, "Unlike the first pandemic globally, extreme lockdowns are not being implemented after the second pandemic, so if vaccine distribution increases externally, exports will not drastically decrease."

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