Government: "Exports Will Rebound in the Second Half of This Year"

June Trade Balance Turns Surplus After 16 Months
Export Growth Rate Hits Lowest in June This Year
"Passing the Bottom, Gradually Improving Trend"

The government has forecasted a rebound in exports in the second half of this year. This is based on the analysis that exports have been gradually improving since hitting a low point last month.

On the 2nd, the Ministry of Trade, Industry and Energy stated, "The export growth rate hit its lowest point in June this year but has been gradually improving since then, and it is expected to turn to an increasing trend in the second half of the year."

According to the export-import trends announced by the Ministry of Trade, Industry and Energy the previous day, exports in June recorded $54.24 billion, a 6.0% decrease compared to the same month last year ($57.7 billion). Although exports have declined for nine consecutive months since October last year, the rate of decline was the lowest this year.

The trade balance in June improved by $3.2 billion compared to May, recording a surplus of $1.13 billion. This ended the longest period (15 months) of trade deficits since just before the IMF foreign exchange crisis (29 months).

An official from the Ministry explained, "The trade surplus in June was influenced by both recent export improvements and a decrease in imports due to falling international energy prices. While the export decline rate significantly eased compared to May, imports continued to decrease at a double-digit rate."

In June, exports of 7 out of the 15 major export items, including automobiles, general machinery, and ships, increased. This represents the highest number of export items with positive growth on a monthly basis this year. In addition to automobiles, which are recording historically high export performance, the increase in exports of ships, general machinery, and secondary batteries (including materials) greatly contributed to the improvement of the trade balance. In particular, exports of high value-added items such as electric vehicles and cathode materials for batteries increased significantly. Semiconductors, Korea's largest export item, saw a decrease in exports in June due to falling memory prices, but exports have been steadily increasing since April, with June recording the largest export volume this year.

An official from the Ministry said, "The government plans to further accelerate cross-ministerial efforts to fully support exports so that the June trade surplus can quickly lead to a positive export growth rate. In the short term, we will strengthen support for resolving on-site difficulties that lead to export expansion and marketing support for promising export items, and actively support the exportization of small and medium-sized enterprises and mid-sized companies to achieve 100,000 export companies."

(Photo) [Image source=Yonhap News]

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