Exports down 5.1% until the 20th of this month... "January export decline inevitable due to insufficient working days" (Update)

Korea Customs Service Announces Export-Import Status for January 1-20
One Less Working Day Compared to Last Year
Fewer Working Days Expected at Month-End Due to Lunar New Year Holiday

Exports have decreased by more than 5% from the beginning of this month to the 20th. This is due to a shortage of working days, and with the Lunar New Year holiday overlapping in the latter part of this month, the number of working days in January will be reduced by 4 days compared to the same period last year, leading to a steeper decline in exports. In this case, monthly exports will record a decrease for the first time in 16 months since September 2023.

According to the export-import status announced by the Korea Customs Service on January 21 for the period from January 1 to 20, export value was $31.6 billion, down 5.1% compared to the same period last year.

Export containers are loaded onto a ship at Busan North Port. Photo by Jinhyung Kang aymsdream@

The government evaluates that the decline in exports is due to the shortage of working days. Cho Ik-no, Trade Policy Officer at the Ministry of Trade, Industry and Energy, said, "Exports from January 1 to 20 decreased due to the impact of one fewer working day," adding, "However, daily average exports excluding the number of working days slightly increased, continuing the momentum for export growth." In fact, the number of working days from January 1 to 20 this month was 14.5 days, one day less than 15.5 days in the same period last year. Considering this, the daily average export amount was $2.18 billion, an increase of 1.4%.

Among the top 10 major export items up to the 20th of this month, 9 items except semiconductors (19.2%) failed to avoid a decline. Passenger cars and steel products decreased by 7.3% and 3.2%, respectively. Additionally, exports of petroleum products (-29.9%), ships (-16.2%), and wireless communication devices (-18.8%) also declined. By country, exports to Vietnam (13.9%) and Taiwan (13.5%) increased, while those to China (-4.9%), the United States (-9.6%), and the European Union (EU, -4.0%) decreased.

Imports from January 1 to 20 amounted to $35.4 billion, down 1.7% compared to the same period last year. By item, imports of semiconductors (18.0%) and machinery (8.2%) increased, while crude oil (-13.8%), gas (-8.8%), and petroleum products (-8.4%) decreased. In particular, energy imports such as crude oil, gas, and coal decreased by 16.9%. Imports from the United States (3.5%) and Japan (7.1%) increased, while those from China (-1.9%), the EU (-5.5%), and Australia (-2.7%) decreased. The trade balance recorded a deficit of $3.8 billion.

The monthly export performance for January is expected to inevitably decline due to the decrease in working days and other factors. Recently, exports showed an increasing trend for 15 consecutive months from October 2023 to December last year. If exports record a negative figure in January this year, it will be the first decline in 16 months. Director Cho said, "In January this year, the Lunar New Year holiday falls in January, unlike last year (February 9-12), and the holiday period lasts a total of 6 days including the temporary holiday (January 27), resulting in a significant decrease of 4 working days in January compared to the same month last year." He added, "In addition, due to holidays in major Asian trading countries such as China's Spring Festival (January 28 to February 4) and Vietnam's Tet (January 25 to February 2), import demand has also decreased, so exports in January will show a temporary slowdown."

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