Exports Rebreak Record High After Two Months... High Possibility of Achieving Annual Record (Comprehensive)

Ministry of Trade, Industry and Energy, September Export and Import Trends

Exports reach $55.83 billion... up 16.7% YoY
11 consecutive months of growth... double-digit growth rate for 7 consecutive months
Annual exports poised for 'positive growth' for the first time in 3 years

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[Sejong=Asia Economy Reporter Joo Sang-don] Last month's export value exceeded $55.8 billion, marking the highest monthly figure since trade statistics began being compiled in 1956. Despite disruptions in logistics movement, exports of semiconductors, steel, and other products played a leading role. With three months remaining until the end of the year, if the current trend continues, this year's export growth rate is expected to turn positive for the first time in three years, and the annual export record set in 2018 is likely to be surpassed.

According to the Ministry of Trade, Industry and Energy on the 1st, September exports amounted to $55.83 billion, up 16.7% compared to the same period last year. This is a new all-time high, achieved just two months after the previous record of $55.48 billion set in July. The growth trend that began in November last year has continued for 11 consecutive months. The double-digit growth rate and monthly export value exceeding $50 billion have been maintained for seven consecutive months since March this year.

The record-high export performance was driven by intermediate goods such as semiconductors, petrochemicals, and steel, as well as IT products including displays, wireless communication devices, and computers. Semiconductor exports reached $12 billion, marking the second-highest monthly figure ever recorded. The growth rate has shown an upward trend for 15 consecutive months. Petrochemicals, petroleum products, and steel also contributed positively to export performance with around 50% growth last month, supported by the recovery in global trade and rising raw material prices. However, exports of automobiles (-6.1%), auto parts (-5.1%), and ships (-40.5%) declined due to the Chuseok holiday shutdown and supply issues with automotive semiconductors. Exports of biohealth, secondary batteries, home appliances, and textiles also decreased by around 5% due to fewer working days.

By region, exports to the United States (14.5%) and the European Union (EU, 15.6%) continued to perform well. Despite the inclusion of the Mid-Autumn Festival holiday last month, exports to China reached $14.3 billion, ranking second highest for any September on record. The export growth rate to China was also in double digits at 17.3%.

The Ministry of Trade, Industry and Energy expressed confidence in achieving the highest annual export record ever, unusually providing an export outlook for the year as September exports hit a record high. Cumulative exports from January to September reached $467.7 billion, the highest ever. If exports exceed $44.8 billion in the remaining fourth quarter, annual exports will turn positive for the first time in three years. Furthermore, if exports exceed $137.2 billion during the same period, the annual export record will be broken. Given that the average quarterly export value this year is $140 billion, the ministry believes this is fully achievable.

The ministry assessed that despite ongoing issues such as rising freight rates due to the shipping logistics crisis and supply problems with automotive semiconductors, these factors are unlikely to have additional negative impacts on exports. A ministry official stated, "Although logistics and automotive semiconductor supply issues have not yet been resolved, these have already been factored in, so unless the situation worsens rapidly, they are not expected to exert additional downward pressure on export performance." He added, "Typically, exports in the fourth quarter are the highest of the year, and barring any surprises, this trend is expected to continue this year as well."

The ministry plans to make every effort to maintain the growth momentum. Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy said, "Following the record-high export value in the first half of the year, the third quarter exports also surpassed all previous quarterly records, showing a very positive trend. However, threats such as the spread of variant viruses, logistics difficulties, supply disruptions of parts, and rising raw material prices continue. We will spare no support measures for export companies to ensure that the current favorable export trend continues until the end of the year."

Meanwhile, September imports were recorded at $51.62 billion, up 31.0% compared to the same period last year. The trade balance remained in surplus for the 17th consecutive month, with a surplus of $4.2 billion.

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