Hanwha Investment & Securities: July Exports Rise on Base Effect... Semiconductors and Automobiles Perform Well

Hanwha Investment & Securities analyzed on August 4 that Korea's exports in July increased year-on-year due to a base effect. While certain items such as semiconductors, automobiles, and ships performed well, other sectors including secondary batteries and IT devices showed weak performance.

Yonhap News Agency

According to the Korea Customs Service and the Ministry of Trade, Industry and Energy, export value in July was $60.82 billion, up 5.9% compared to the same month last year. Imports reached $54.21 billion, an increase of 0.7%. The trade balance recorded a surplus of $6.61 billion.

Lim Hyeyoon, a researcher at Hanwha Investment & Securities, stated, "Among the 15 major items, only ships, semiconductors, and automobiles saw an increase in average daily exports compared to the same month last year. Average daily exports of secondary batteries, computers, and wireless communication devices decreased, while displays and petroleum products showed better performance compared to the previous three months."

She analyzed, "The rebound in export growth was because exports in July last year were weak. The average daily exports in July last year were the lowest of the year."

She further noted, "Although the export growth rate rose, displays were the only item among the 15 major products to see an increase in average daily exports compared to the previous month, and average daily exports to all nine major regions decreased from the previous month. Even considering that average daily exports in May and June were at their highest levels this year, exports this time were somewhat weak."

In the second half of the year, export conditions are expected to improve as some tariffs are lowered following the conclusion of tariff negotiations with the Trump administration. Lim Hyeyoon projected, "It was not an extension of the grace period, but a conclusion of the negotiations, which resulted in lower tariffs. This is expected to facilitate decisions on postponed investments. Exports in the second half are expected to increase by around 3%, mainly in semiconductors, machinery, and petrochemical products."

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