Export of SoBuJang Reaches $203.2 Billion from January to July, Highest in 10 Years... "Reduced Dependence on Imports from Japan"

Exports of SoBuJang from January to July increased by 23.3% YoY
Trade deficit in SoBuJang with Japan widened by $2.1 billion... "Dependence on imports from Japan is decreasing"

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] From January to July this year, global exports of materials, parts, and equipment (SoBuJang) surpassed 200 billion dollars, achieving the largest scale in the past 10 years. The trade surplus in SoBuJang reached about 20 billion dollars, exceeding three times that of all industries.

The Ministry of Trade, Industry and Energy announced on the 8th that global SoBuJang exports from January to July this year recorded 203.2 billion dollars, a 23.3% increase compared to the same period last year.

Specifically, exports increased in all sectors, including chemical substances and chemical products (44.4%) and transportation machinery parts (33.5%).

SoBuJang imports amounted to 140.5 billion dollars from January to July this year, a 25.4% increase compared to the same period last year. Imports increased across all sectors, centered on semiconductor and display equipment (62.6%) and primary metal products (53.5%). The trade balance achieved a surplus of 62.7 billion dollars, with the surplus size exceeding three times that of all industries (19.7 billion dollars).

The SoBuJang trade balance with Japan recorded a deficit of 13.8 billion dollars, increasing the deficit by 2.1 billion dollars compared to the 11.7 billion dollar deficit from January to July last year. Exports increased by 13.2% to 8.4 billion dollars due to increased exports of primary metal products and electronic components, but imports, mainly semiconductor and display equipment, reached 22.2 billion dollars.

However, dependence on Japan for SoBuJang is decreasing. According to the Ministry of Trade, Industry and Energy, the average annual growth rate of SoBuJang exports and imports with Japan from 2012 to January-July 2021 decreased by 1.5% in exports and 2% in imports as of this year. In particular, this year’s import dependence on Japan was 15.8%, the lowest ever recorded. Considering that the average annual growth rates of global SoBuJang exports and imports are 2.5% and 2.7%, respectively, the Ministry explained that dependence on Japan for SoBuJang is continuously decreasing.

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