First Half-Year Exports Surpass $300 Billion for the First Time... Will This Year Achieve an All-Time High?

[Image source=Yonhap News]

[Asia Economy Reporter Joo Sang-don] For the first time ever, export value in the first half of this year surpassed 300 billion dollars. This is interpreted as a result of the remarkable growth of new export industries such as system semiconductors, biohealth, and secondary batteries, amid a clear recovery in the global economy and trade that had sharply contracted due to the COVID-19 crisis that began last year.

According to the Ministry of Trade, Industry and Energy on the 4th, export value from January to June this year increased by 26.1% compared to the same period last year, reaching 303.24 billion dollars. This exceeded the previous highest record of 296.7 billion dollars in the first half of 2018. The export growth rate (26.1%) was the highest in 11 years.

Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy said, "While traditional key industries are solidifying their positions in the global market, the proportion of future high value-added products such as system semiconductors, eco-friendly vehicles, OLED, and high value-added ships is continuously expanding." He added, "It is encouraging that all new growth items including biohealth, secondary batteries, agricultural and marine products, and cosmetics achieved record-high export values in the first half."

Exports of the top 15 items all increased in the first half of this year, with 14 of them showing double-digit growth rates. The increase in exports of all top 15 items in the first half has occurred only three times, including this year, in 1991 and 2004. Among the nine major export regions, exports increased to eight markets except the Middle East.

In particular, exports in June this year also recorded 54.8 billion dollars, up 39.7% compared to the same period last year. The upward trend that began in November last year has continued for eight consecutive months. Especially, the growth rate in the last three months hovered around 40%. Last month's export value was the highest ever for June and ranked third when compared to all months, following September 2017 (55.1 billion dollars) and October 2018 (54.9 billion dollars). For the first time in 10 years since January 2011, exports of the top 15 items and exports to the nine major regions all increased.

Semiconductors, supported by steady memory demand, surpassed 10 billion dollars for two consecutive months, setting a new record for June exports. General machinery and petrochemicals, the second and third largest export items, also achieved their highest export values for June amid the global economic recovery. Thus, Korea’s top three export items all recorded their best June performances ever. Demand for automobiles and auto parts recovered to pre-COVID-19 levels, with exports increasing by over 50% and 100%, respectively. Notably, automobile exports showed double-digit growth for six consecutive months. New industries such as secondary batteries and biohealth also set record-high export values for June.

The Ministry of Trade, Industry and Energy expects this year’s export value to likely reach an all-time high. Minister Moon said, "Despite ongoing threats such as logistics difficulties in import and export, supply disruptions of parts, and rising raw material prices, the public and private sectors will work together to minimize risks and provide support such as financial and marketing assistance to export companies, so that exports this year can break the all-time record."

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