Trade Deficit of $6.5 Billion from December 1-20... Approaching $50 Billion This Year (Update)

Exports from December 1-20 total $33.6 billion, down 8.8% YoY
Imports at $40.1 billion...Cumulative trade deficit of $49 billion
Semiconductor exports plunge 24.3%...Declining for 5 consecutive months

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Lee Jun-hyung] The trade deficit accumulated up to the 20th of this month has surpassed $49 billion. The expectation that this year's annual trade balance will turn into a deficit for the first time in 14 years since the 2008 financial crisis has essentially become a reality. Exports, which have been a pillar of the Korean economy, are also likely to continue negative growth for the third consecutive month.

According to the Korea Customs Service on the 21st, exports from the 1st to the 20th of this month amounted to $33.6 billion, down 8.8% compared to the same period last year. The average daily export value, considering the number of working days, also decreased by 8.8% over the past year. Imports during the same period increased by 1.9% to $40.1 billion. As a result, the trade balance recorded a deficit of $6.5 billion. The trade balance has been in an 'eight-month consecutive deficit streak' from April to last month.

The accumulated trade deficit up to the 20th of this month reached $49 billion. This is the first time since trade statistics began in 1956 that the cumulative trade deficit has exceeded $40 billion. At this rate, the trade deficit could surpass $50 billion within this month. The previous maximum annual trade deficit was $20.62 billion, recorded in 1996 just before the foreign exchange crisis.

Semiconductor exports, which played a key role in driving exports, have also fallen into a 'negative growth swamp.' Semiconductor exports from the 1st to the 20th of this month amounted to $5.584 billion, a sharp decline of 24.3% compared to the same period last year. If semiconductor exports continue to decline this month, it will mark five consecutive months of negative growth. Other major export items also showed decreases, including steel (-17.4%), wireless communication devices (-43.8%), and home appliances (-23.3%).

Exports to China, Korea's largest trading partner, are also declining. Exports to China from the 1st to the 20th of this month were $7.198 billion, down 26.6% compared to the same period last year. Exports also decreased to Japan (-12.2%), Vietnam (-20.6%), and Taiwan (-22%).

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