Cumulative Trade Deficit of $26.5 Billion This Year... Prolonged Sharp Decline in Exports to China and Semiconductors

Customs Service April 1-20 Export-Import Statistics
Exports Down 11.0% · Imports Down 11.8%
China Down 26.8% · Semiconductors Down 39.3%
This Year's Trade Deficit Up 56.2% Compared to Last Year

As the global economic recovery slows down, South Korea's trade balance has continued to run a deficit for 1 year and 2 months. In particular, exports to China sharply declined, leading the downward trend in exports. With exports decreasing more than imports, the cumulative trade deficit this year has already exceeded $26.5 billion.

According to the Korea Customs Service on the 21st, the export value from April 1 to 20 (provisional customs clearance basis) was $32.37 billion, down 11.0% compared to the same period last year. The number of working days during this period was 15.5, the same as last year (15.5 days). Considering the number of working days, the average daily export value was $2.09 billion, down 11.0%.

The export value has been in a 'negative' trend for 7 consecutive months from October last year to the 20th of this month. The last time exports decreased for more than 7 consecutive months on a monthly basis was from December 2018 to January 2020.

By item, semiconductor exports fell 39.3% compared to a year ago. The key item, semiconductors, has seen exports decline for 9 consecutive months until mid-April. Exports of petroleum products (-25.3%) and wireless communication devices (-25.4%) also decreased compared to a year ago. On the other hand, exports of passenger cars (58.1%) and ships (101.9%) increased.

By country, exports to China, the largest trading partner, amounted to $6.297 billion, down 26.8%. The decline in exports to China has continued for 11 months until mid-April. Exports to Vietnam (-30.5%) and Japan (-18.3%) also decreased. Exports to the United States increased by 1.4% to $5.893 billion. Exports to the European Union (EU, 13.9%) and Singapore (0.4%) also rose.

During the same period, imports amounted to $36.09 billion, down 11.8%. Among the three major energy sources, imports of crude oil (-37.2%) and coal (-20.2%) decreased, while gas imports increased slightly (2.5%). Imports of precision instruments (-8.3%) and wireless communication devices (-3.9%) also declined. By country, imports from China (2.1%) and the EU (4.8%) increased, while imports from the United States (-12.3%), Japan (-14.5%), and Saudi Arabia (-32.9%) decreased.

From April 1 to 20, imports exceeded exports, resulting in a trade deficit of $4.139 billion. The trade balance has recorded a deficit for 14 consecutive months from March last year to the 20th of this month. However, the deficit size was smaller than the same period last year ($5.02 billion deficit). The cumulative trade deficit from the beginning of this year to the 20th of this month was $26.584 billion. This figure corresponds to 56.2% of last year's record-high annual trade deficit of $47.8 billion.

[Image source=Yonhap News]

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