Exports down 16.5% until the 20th of this month... "11 consecutive months of decline expected" (Update)

KCS Export-Import Status from August 1-20
Semiconductors Down 24.7%·Cars Up 20.2%
Choo Kyung-ho "Exports to Turn Positive in October"

Exports from the beginning of this month to the 20th have decreased by more than 16% compared to the same period last year. The downward trend in exports, which began in October last year, is likely to continue for 11 consecutive months. Imports have decreased more than exports, and among export items, passenger cars have increased while semiconductors continue to decline.

Container unloading at Pyeongtaek Port. Photo by Hyunmin Kim kimhyun81@

On the 21st, the Korea Customs Service announced the 'Export and Import Status from August 1 to 20' containing this information. Export value was $27.9 billion, down 16.5% (-$5.5 billion) compared to the same period last year. The rate of decline widened by 1.3 percentage points from the previous month’s same period (-15.2%).

The number of working days up to the 20th of this month was 14.5 days, one day fewer than the 15.5 days in the same period last year. Considering this, the average daily export value was $1.92 billion, down 10.7% compared to the same period last year.

Among the top 10 major items, all decreased except for three items: passenger cars (20.2%), wireless communication devices (6.1%), and ships (54.9%). The decline was steep in semiconductors (-24.7%), petroleum products (-41.7%), and steel products (-20.5%).

In July, semiconductor exports (-33.6%) continued to decline, and due to the drop in crude oil prices from $103.14 per barrel in July last year to $80.45 in July this year, exports of petroleum products (-42.3%) and petrochemicals (-24.5%) also showed a downward trend due to price decreases.

From August 1 to 20, exports to nine out of the top 10 major countries, except Hong Kong (36.1%), decreased. Exports to China (-27.5%), the United States (-7.2%), and the European Union (EU, -7.1%) remained sluggish.

Imports declined more sharply than exports (-16.5%). As of the 20th of this month, import value was $31.4 billion, down 27.9% compared to the same period last year.

Imports of all top 10 major items, including crude oil (-37.4%), semiconductors (-25.1%), and passenger cars (-46.3%), decreased. Imports from the top 10 major countries also declined, including China (-22.1%), the United States (-35.8%), the EU (-20.7%), and Japan (-23.7%).

The trade balance from August 1 to 20 recorded a deficit of $3.566 billion, bringing the cumulative deficit this year to $28.44 billion. The deficit for this month increased by $2.216 billion compared to the $1.35 billion deficit recorded during the same period in July (July 1?20).

Meanwhile, the government expects exports to rebound around October. On the 16th, Choo Kyung-ho, Deputy Prime Minister and Minister of Economy and Finance, stated at a press conference, "August is seasonally weak for exports due to the overlap with summer vacation, but from September, the trade balance is likely to enter a structural surplus. We expect it to turn positive in October."

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