Exports Down 12.6% from February 1-10... Trade Deficit Likely to Continue for the Time Being (Comprehensive)

Korea Customs Service Announces 'Export and Import Status from February 1 to 10'
Exports Down 12.6%, Imports Down 6.6%... Impact of Lunar New Year Holiday
Trade Deficit $3.5 Billion... Deficit Widened Compared to One Year Ago

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] Export value from the 1st to the 10th of this month decreased by 12.6% compared to the same period last year. This was due to a reduction in working days compared to the same period last year because of the Lunar New Year holidays. Although import value fell by 6.6% year-on-year, it still exceeded export value, continuing the trend of a trade deficit.

The Korea Customs Service announced that export value (provisional customs clearance basis) from the 1st to the 10th of this month was $15.7 billion, down 12.6% from the same period last year. Import value was $19.2 billion, down 6.6% from the same period last year. The trade balance, calculated by subtracting import value from export value, recorded a deficit of $3.58 billion.

The number of working days during this period was 6.5 days, two days fewer than a year ago. Considering the working days, the average daily export value was $2.41 billion, up 14.2% from $2.11 billion during the same period last year.

As of the 10th of this month, cumulative exports for this year totaled $71 billion, an increase of 7.6% ($5.04 billion) compared to the same period last year.

Specifically, among major export items, exports of semiconductors (7.4%), petroleum products (27.1%), and computer peripherals (29%) increased. On the other hand, exports of passenger cars (-47.5%) and wireless communication devices (-44.2%) sharply declined.

By country, exports to Taiwan (9.1%) and Singapore (26.1%) increased. However, exports to China (-3%), the United States (-17.3%), Vietnam (-13.4%), and the European Union (-33.5%) decreased.

Cumulative imports for this year reached $79.4 billion, up 22.1% ($14.34 billion) compared to the same period last year. By item, import values increased for crude oil (11.8%), semiconductors (1.1%), petroleum products (8.6%), and passenger cars (25.8%). Imports of gas (-33.9%) and machinery (-11.1%) decreased.

By country, imports from Australia (11.6%) and Saudi Arabia (50.4%) increased, while those from China (-7.3%), the United States (-33%), Japan (-1.3%), and the European Union (-12.1%) decreased.

The trade balance has been in deficit for three consecutive months since December last year. Last month, the trade deficit reached $4.89 billion, marking the largest deficit since trade statistics began in 1966. The main cause is attributed to the sharp rise in prices of energy such as petroleum and raw materials.

This trend is expected to continue for the time being. Professor Kim Sang-bong of Hansung University’s Department of Economics explained, “The trade deficit is a complex result of factors including the slowdown in the Chinese economy and global supply chain issues,” adding, “The trade deficit will continue at least through the first half of this year.” Professor Jeong In-kyo of Inha University’s Department of International Trade stated, “The high oil price situation inevitably affects this month’s trade balance,” and added, “We need to observe international efforts to lower oil prices, but the high oil price condition is expected to persist for the time being.”

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