Concerns Over Trade Deficit for 7 Consecutive Months... Trade with China Also Shaken (Comprehensive)

Trade Deficit of $4.954 Billion from October 1-20
Cumulative Deficit Hits Record High of $33.8 Billion
Trade Deficit with China Turns to $1.155 Billion Deficit

[Asia Economy Sejong=Reporter Dongwoo Lee] Concerns are growing over a trade deficit for seven consecutive months for the first time in 25 years since 1997. The cumulative trade deficit this year has already approached $34 billion. With exports decreasing compared to the previous year, there are concerns that the domestic economy's mainstay is facing an emergency.

According to the Korea Customs Service on the 21st, exports from October 1 to 20 amounted to $32.4 billion, imports were $37.4 billion, resulting in a trade deficit of $4.954 billion. Exports decreased by 5.5% compared to the same period last year, while imports increased by 1.9%. If the trade deficit continues for seven consecutive months by the end of this month, it will be the first time in 25 years since the 1997 International Monetary Fund (IMF) foreign exchange crisis.

The number of working days during this period was 13.5 days, 0.5 days more than the same period last year (13 days). The average daily export amount decreased by 9.0%, indicating a larger decline. If the total exports for this month decrease, it will mark a shift to a downward trend for the first time in two years since October 2020.

Looking at exports by major items, semiconductors decreased by 12.8% compared to the same period last year to $5.573 billion, steel products decreased by 17.6% to $2.389 billion, wireless communication devices decreased by 15.6% to $1.288 billion, and ships decreased by 22.9% to $1.086 billion. On the other hand, exports of petroleum products (16.4%) and passenger cars (32.1%) increased. By country, exports to the United States (6.3%), European Union (3.4%), and Vietnam (1.7%) increased, but exports to China (-16.3%), Japan (-16.1%), and Taiwan (-26.7%) decreased.

Imports saw semiconductors increase by 13.9% to $4.328 billion, gas increased by 24.6% to $2.815 billion, semiconductor equipment increased by 13.2% to $1.041 billion, coal increased by 14.8% to $1.032 billion, and passenger cars increased by 34.6% to $734 million. While crude oil imports, a major energy source, slightly decreased by 0.3%, coal and gas imports continued to increase by double digits. By country, imports from China (10.9%) and the United States (6.6%) increased, while imports from the European Union (-1.5%), Japan (-6.0%), and Saudi Arabia (-1.4%) decreased.

With imports increasing, the trade balance with major countries such as China continued to show a deficit. Exports to China recorded $7.624 billion, while imports were $8.779 billion, resulting in a deficit of $1.155 billion. Additionally, the trade balance with Japan also showed a deficit of $1.581 billion, and trade with Taiwan recorded a deficit of $461 million, worsening the trade balance.

The cumulative trade deficit for this year stands at $33.843 billion, setting a record high on an annual basis. Earlier, as of the 10th of this month, the cumulative trade deficit surpassed $30 billion for the first time since trade statistics began in 1956. As of the 20th of this month, cumulative exports were $55.734 billion, an 11.0% increase compared to the same period last year, while imports were $59.115 billion, a 23.3% increase.

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