January Export Value $55.32 Billion, Up 15.2%... Highest January Record Ever (Comprehensive)

Trade Deficit of $4.89 Billion
Impact of Soaring Energy Prices

Archive photo_Pyeongtaek Port container. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Sejong=Reporter Dongwoo Lee] Export value in January this year surpassed $50 billion for the first time in history for the month of January.

The Ministry of Trade, Industry and Energy announced on the 1st that last month's export value was recorded at $55.32 billion, a 15.2% increase compared to the same period last year. This is the first time January exports have exceeded $50 billion.

The average daily export value was $2.51 billion, marking the highest performance in January. This figure surpasses the average daily export value of $2.36 billion recorded last year, which was the highest annual export record.

Korean exports have increased for 15 consecutive months since November last year. Despite the spread of Omicron, reduced working days, rising raw material prices, and a high base effect from January last year, exports last month continued to grow at a double-digit rate.

Among the 15 major items, exports of 14 items increased. The top three export items?semiconductors (+24.2%), petrochemicals (+40.0%), and general machinery (+14.1%)?all showed double-digit growth, each recording the largest export volume ever for January.

In particular, semiconductors surpassed $10 billion for the first time ever in January despite the seasonal off-season, achieving $10 billion in exports for nine consecutive months. Petrochemicals also exceeded $5 billion on a monthly basis, setting a record high due to increased demand from upstream industries and price increases driven by rising oil prices.

Petroleum products (+88.4%) and steel (+50.1%) also showed long-term export growth, driving January exports. On the other hand, ship exports were the only category to decline due to a reverse base effect from the surge in exports in January last year ($3.49 billion).

By region, exports increased for 10 consecutive months in all nine major regions. Key export markets such as China, the United States, the EU, and ASEAN, as well as emerging markets like Latin America and India, all showed favorable trends. China, the top market, achieved $13 billion for 11 consecutive months, and ASEAN, the second-largest market, reached $10 billion for three consecutive months, significantly contributing to export performance. The US and EU maintained export growth for 17 consecutive months, while China and Latin America continued growth for 15 consecutive months.

Last month's import value recorded $60.21 billion, a 35.5% increase compared to the same period last year, and the trade balance, which represents the difference between exports and imports, was recorded as a deficit of $4.89 billion. The Ministry of Trade, Industry and Energy analyzed that January imports increased due to seasonal factors such as soaring energy prices and high energy demand during the winter season.

The total import amount of the three major energy sources?crude oil, gas, and coal?in January this year was $15.95 billion, an increase of $9.06 billion compared to the import amount of $6.89 billion in January last year. With the expansion of intermediate goods imports accompanying the export boom, the scale of January imports ranked second highest ever.

The Ministry explained that Japan, which has an industrial structure similar to Korea's, and France, which has a high proportion of energy imports, also recently experienced large deficits. The recent trade deficit is interpreted as structurally different from past financial crises or the COVID-19 crisis, as both exports and imports are steadily increasing.

Moon Seung-wook, Minister of Trade, Industry and Energy, evaluated, "From the first month of 2022, our exports have grown at a double-digit rate, surpassing $50 billion for the first time in January, continuing a favorable trend. Most key industries, new industries, and major markets have shown balanced export performance, marking a successful first step this year."

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