July Trade Deficit of $4.67 Billion... Four Consecutive Months of Deficit for the First Time in 14 Years (Update)

On the 7th, cargo trucks were parked at the Inland Container Depot (ICD) in Uiwang-si, Gyeonggi Province, as the Cargo Solidarity Union launched a general strike demanding the abolition of the sunset clause on safe freight rates and an increase in transportation fees due to high oil prices. Photo by Moon Honam munonam@

[Asia Economy Sejong=Reporter Dongwoo Lee] South Korea's trade balance recorded a deficit of $4.67 billion in July, marking the first time in 14 years since the 2008 global financial crisis that a deficit has been recorded for four consecutive months.

According to the Ministry of Trade, Industry and Energy's 'Export-Import Trends' on the 1st, July exports increased by 9.4% year-on-year to $60.7 billion, while imports rose by 21.8% to $65.37 billion, resulting in a trade deficit of $4.67 billion.

The prolonged Russia-Ukraine war has driven up energy prices, significantly increasing import amounts. Energy imports reached $18.50 billion, up 90.5% from $9.71 billion the previous year. Crude oil prices rose 41.4%, gas 113.9%, and coal 173.5% compared to the previous year.

However, exports achieved a record high for July, surpassing the previous best of $55.5 billion in July last year by more than $5 billion, reaching $60.7 billion. Among product categories, the seven major items including semiconductors and petroleum products increased. Notably, petroleum products and automobiles recorded all-time monthly highs, while semiconductors achieved the highest July export value ever.

By region, exports to China, the Commonwealth of Independent States (CIS), and Latin America decreased, while exports to the United States, the Association of Southeast Asian Nations (ASEAN), and the European Union (EU) increased. The United States and India recorded their highest monthly exports ever, and ASEAN and the EU achieved their highest exports for any July on record.

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