Trade Surplus of $1.63 Billion in July... Surplus for Two Consecutive Months (Update)

Ministry of Trade, Industry and Energy, July Export and Import Trends

Last month, the trade balance recorded a surplus of 1.6 billion dollars, continuing the surplus trend established in June.

According to the Ministry of Trade, Industry and Energy on the 1st, July exports amounted to 50.33 billion dollars, down 16.5% from the previous year, imports fell 25.4% to 48.71 billion dollars, and the trade balance recorded a surplus of 1.63 billion dollars.

July exports decreased by 16.5% due to the semiconductor industry downturn, price declines in petroleum products and petrochemicals following the drop in oil prices, and a reverse base effect from last July’s record-high exports (60.2 billion dollars) for the month.

Automobile exports reached 5.9 billion dollars, up 15% compared to the same period last year, marking the highest performance ever recorded for July. Exports of general machinery (3%) and home appliances (3%) also increased. On the other hand, exports of semiconductors (-34%), petroleum products (-42%), petrochemicals (-25%), and steel (-10%) declined due to price drops compared to the previous year.

Exports to the United States and the European Union (EU) decreased due to a decline in exports of semiconductors, petroleum products, and petrochemicals, whose prices fell sharply despite strong automobile and general machinery exports, as well as a reverse base effect from last July’s record-high exports to the US (10.1 billion dollars) and the EU (6.16 billion dollars). However, exports of electric vehicles and cathode materials related to the Inflation Reduction Act (IRA) continued to perform well in the US market.

In the case of China and ASEAN, the decline in semiconductor prices, a major export item, and sluggish exports from China and Vietnam led to a decrease in imports of intermediate goods, resulting in a decline in South Korea’s exports. The trade balance with China recorded a deficit of 1.27 billion dollars in July but has been gradually improving since March this year (-2.71 billion dollars).

July imports decreased by 25.4% due to reduced energy imports (-47%) such as crude oil (-46%), gas (-51%), and coal (-46%) following the drop in oil prices. Imports of items excluding energy also declined due to price decreases and other factors.

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy said, "The trade balance has achieved consecutive surpluses in June and July, making the maintenance of the surplus trend visible. This is because exports of key industries such as semiconductors and major items like automobiles and general machinery continue to perform well, and semiconductors are also showing gradual recovery." He added, "The ministry plans to strengthen the foundation for export expansion through bold support for advanced strategic industries and active investment attraction, and will focus all efforts on establishing a low-energy consumption and high-efficiency energy structure."

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