'10-Month Consecutive' Export Growth... Government Says Annual $700 Billion Fully Achievable (Comprehensive)

Ministry of Industry, Trade Trends for July 2024
Trade Surplus of $3.6 Billion... 14 Consecutive Months of Surplus
Andeokgeun: "In the Second Half, Focused Operation of Export Support Team Centered on 'New Export Engines'"

Exports in July increased by nearly 14%, continuing the positive export trend for 10 consecutive months since October last year. The trade balance also recorded a surplus for 14 consecutive months. The government expects to achieve this year's target of 700 billion dollars.

On the 1st, the Ministry of Trade, Industry and Energy announced the export-import trends for July 2024, containing these details.

According to the report, export value recorded 57.49 billion dollars, up 13.9% compared to the previous year. July exports marked the second highest performance ever for July, maintaining a positive trend for 10 consecutive months.

Cargo is stacked on a container ship docked at Busan Port. Photo by Jinhyung Kang aymsdream@

Last month, exports of 11 out of the 15 major export items increased. Exports of all IT items including semiconductors, displays, computers, and wireless communication devices increased for five consecutive months, with a combined export value of 15.6 billion dollars, marking nine consecutive months of growth. In particular, semiconductor exports recorded 11.2 billion dollars (50.4%), maintaining a positive trend for nine consecutive months. Display exports (1.7 billion dollars, 2.4%) increased for 12 months, computer exports (1.2 billion dollars, 61.6%) for seven months, and wireless communication devices (1.5 billion dollars, 53.6%) for five months consecutively.

Automobile exports decreased by 9.1% compared to the previous year to 5.4 billion dollars due to the summer vacation of major companies. However, automobile parts exports increased by 9.5% to 2.2 billion dollars, turning positive after three months.

General machinery exports recorded 4.9 billion dollars (12.5%), the highest ever for July, marking a positive trend after three months. Petroleum products (4.5 billion dollars, 16.7%) increased for five consecutive months, and petrochemicals (4.2 billion dollars, 18.5%) for four consecutive months. Biohealth (1.2 billion dollars, 29.0%), textiles (900 million dollars, 1.6%), and home appliances (700 million dollars, 9.4%) also turned to an increasing export trend after one month.

By region, exports increased to eight out of nine major markets. Exports to China reached 11.4 billion dollars (14.9%), the highest in 21 months since October 2022 (12.2 billion dollars), driven by increased exports of IT items such as semiconductors and wireless communication devices due to improved IT industry conditions. The cumulative exports to China from January to July recorded 74.8 billion dollars (6.7%), the highest export amount by region. Exports to the United States also recorded the highest ever for July at 10.2 billion dollars (9.3%), marking 12 consecutive months of record monthly performance.

The government forecasts that exports this year can reach 700 billion dollars. Choi Woo-seok, Director of Trade and Investment at the Ministry of Trade, Industry and Energy, said, "From August, about 310 billion dollars need to be exported over the remaining five months, averaging about 60 billion dollars per month. There is export potential as monthly export amounts have exceeded 60 billion dollars before." He added, "If various market conditions and industry trends, including semiconductors, are maintained in the second half, achieving 700 billion dollars is fully possible."

Imports in July amounted to 53.88 billion dollars, up 10.5% compared to the same period last year. Energy imports increased by 11.9% to 10.9 billion dollars due to expanded imports of crude oil (16.1%) and gas (23.8%). Last month, the trade balance recorded a surplus of 3.6 billion dollars, continuing the surplus trend for 14 consecutive months. The cumulative surplus from January to July was 26.7 billion dollars, the largest since 2018.

Minister of Trade, Industry and Energy Ahn Deok-geun stated, "The government will concentrate all available resources in a public-private one-team effort to ensure the achievement of this year's record-high export target without any setbacks." He added, "In the second half, we will intensively operate export field support teams focusing on new export growth sectors with high export potential such as power equipment and K-Food, actively identifying and promptly resolving on-site difficulties faced by export companies to support our companies in exporting even one more dollar."

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