Operating days reduced by 1.5 days... Can the export growth trend be maintained?

by Ju Sangdon

Published 18 Feb.2024 09:37(KST)

Exports decreased by nearly 15% until the 10th of this month. This was due to a shortage of working days, and it is expected that the overall impact of reduced working days will be unavoidable throughout February.

According to the Korea Customs Service on the 18th, the export-import status from February 1 to 10 was announced. During this period, export value was $15 billion, down 14.6% ($2.56 billion) compared to the same period last year.

Among major export items, semiconductors (42.2%) increased compared to the same period last year. Petroleum products (-21.0%), passenger cars (-36.3%), and auto parts (-13.3%) decreased. By country, exports to Hong Kong (143.1%) increased, while those to the United States (-12.4%), China (-20.3%), the European Union (EU, -35.5%), and Vietnam (-19.2%) decreased.

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

An official from the Ministry of Trade, Industry and Energy explained, "The double-digit decline in exports this time is a temporary phenomenon caused by a shortage of working days due to the Lunar New Year holiday," adding, "Considering the number of working days, the average daily export increased by double digits."

He added, "However, in February, exports of automobiles and exports to China may slow down due to the Lunar New Year and the Chinese Spring Festival," but he also forecasted, "Overall, export momentum is expected to continue, centered on IT items such as semiconductors and computers."

Until the 10th of this month, the number of working days was 6.5 days, which is 2 days fewer than the same period last year (8.5 days). Taking this into account, the average daily export value was $2.31 billion, an increase of 11.7% compared to the same period last year ($2.07 billion). For the entire month of February, the number of working days is 20.5 days, 1.5 days fewer than the same period last year (22 days).

Imports from the 1st to the 10th of this month amounted to $17 billion, down 24.6% ($5.56 billion) compared to the same period last year. Semiconductor manufacturing equipment (32.8%) increased, but crude oil (-14.3%), semiconductors (-13.7%), and gas (-57.5%) decreased. Energy imports such as crude oil, gas, and coal showed a 33.0% decline. Imports from major countries increased from Taiwan (10.8%), while those from China (-3.4%), the United States (-31.7%), the EU (-23.3%), and Japan (-30.5%) decreased.

The trade balance recorded a deficit of $2 billion. Including this, the cumulative trade balance for this year is a deficit of $1.673 billion.