Annual Export Expected to Break Record High... Key Issues Are 'Variant Viruses and Raw Material Prices'

September Export Value Hits All-Time High
Annual Positive Growth Confirmed
Exports Increase for 11 Consecutive Months

On the 17th, one day before the Chuseok holiday, export vehicles are waiting to be loaded at Pyeongtaek Port in Gyeonggi. Photo by Moon Honam munonam@

[Asia Economy Reporter Joo Sang-don] This year’s export growth rate has turned positive for the first time in three years, and there is a strong possibility of surpassing the 2018 record, which set the highest annual export figure to date. Last month’s export value exceeded $55.8 billion, marking the highest monthly figure since trade statistics began in 1956, with the upward trend continuing for 11 consecutive months.

According to the Ministry of Trade, Industry and Energy on the 4th, 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 now continued for 11 months. Double-digit growth rates and monthly export values exceeding $50 billion have been recorded 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 and showing a continuous upward trend for 15 months. Petrochemicals, petroleum products, and steel also contributed positively 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 shutdowns and supply issues with automotive semiconductors. Exports of biohealth, secondary batteries, home appliances, and textiles also decreased by about 5% due to fewer working days.

The Ministry of Trade, Industry and Energy forecasts that exports will not only turn positive this year but also achieve an all-time high. The cumulative export value from January to September stands at $467.7 billion, the highest ever. If exports exceed $44.8 billion in the fourth quarter, annual exports will turn positive for the first time in three years. Furthermore, if exports surpass $137.2 billion in the remaining fourth quarter, the annual export record will be broken. The average quarterly export value this year is $140 billion. By presenting the remaining export targets needed for both positive growth and record-breaking achievements, the ministry expressed a positive outlook for future export performance.

The ministry plans to make every effort to maintain the growth trend. Minister Moon Seung-wook of the Ministry of Trade, Industry and Energy stated, "Following the highest export value recorded in the first half of the year in export history, the third quarter export value also surpassed all previous quarterly records, showing a very favorable 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 effort in providing all support measures for export companies to ensure that this positive export momentum continues through the end of the year."

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