October Trade Deficit Hits $6.7 Billion...Exports Turn Negative for First Time in 2 Years (Update)

[Asia Economy Sejong=Reporter Dongwoo Lee] South Korea's exports in October decreased by 5.7%, marking the first monthly decline in two years. The trade deficit recorded $6.7 billion, continuing a deficit streak for seven consecutive months. The cumulative trade deficit for this year reached $35.6 billion, setting a new annual record high.

According to the 'October 2022 Export-Import Trends' released by the Ministry of Trade, Industry and Energy on the 1st, South Korea's exports last month amounted to $52.482 billion, down 5.7% compared to the previous year. This is the first monthly decrease in South Korean exports since October 2020, two years ago.

Exports of petroleum products, automobiles, and secondary batteries achieved record highs for October. However, due to the global economic slowdown, exports of semiconductors, wireless communication devices, and petrochemicals declined. Exports to the United States and the European Union (EU) increased, but exports to China and ASEAN decreased.

During the same period, imports amounted to $59.18 billion, up 9.9% year-on-year. Imports of major energy raw materials such as crude oil, coal, and gas increased by $4.6 billion to $15.53 billion, widening the deficit.

Imports exceeded exports, resulting in a trade deficit of $6.77 billion. The trade deficit increased by $3 billion compared to the previous month of September (-$3.77 billion).

Thus, the trade balance has been in deficit for seven consecutive months since April this year, the first time in 25 years since the International Monetary Fund (IMF) foreign exchange crisis in 1997. The cumulative trade deficit for this year reached $35.585 billion, setting a record high.

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