Exports Fell 7.8% This Month Due to Shortage of Operating Days (Update)

Due to the shortage of working days, exports from the 1st to the 20th of this month also failed to avoid a declining trend. However, the rate of decline is gradually narrowing. The government expects this improvement to continue, resulting in an overall increase for February.

The Korea Customs Service announced the export-import status for February 1-20 on the 21st, which included this information. According to the report, export value was $30.7 billion, down 7.8% ($2.61 billion) compared to the same period last year.

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Jo Ik-no, Trade Policy Officer at the Ministry of Trade, Industry and Energy, explained, "Exports recorded a negative growth until the 20th of this month, but as the impact of the Lunar New Year holiday gradually eased, the decline rate decreased from 14.6% during the 1st to 10th to 7.8% during the 1st to 20th. Considering the shortage of working days, the average daily export is positive."

The number of working days from the 1st to the 20th of this month was 13.0 days, 2.5 days fewer than the 15.5 days during the same period last year. Taking this into account, the average daily export value was $2.36 billion, an increase of 9.9% compared to the same period last year.

Among the top 10 major export items, semiconductors showed a significant increase of 39.1%. On the other hand, exports of petroleum products (-6.4%), passenger cars (-23.3%), and automobile parts (-16.5%) decreased.

By country, exports increased to Hong Kong (129.1%) and Malaysia (48.5%), but decreased to China (-12.8%), the United States (-5.0%), the European Union (EU, -22.8%), and Vietnam (-12.2%).

Imports also decreased. From the 1st to the 20th of this month, import value was $32.0 billion, down 19.2% ($7.58 billion) compared to the same period last year.

By item, imports of semiconductor manufacturing equipment increased by 3.8%, but crude oil (-12.8%), semiconductors (-0.5%), and gas (-55.3%) decreased. Energy imports including crude oil, gas, and coal also dropped by 31%. By country, imports increased from Vietnam (3.9%) and Taiwan (3.1%), but decreased from China (-10.8%), the United States (-22.8%), and the EU (-18.4%).

From the beginning of this month to the 20th, the trade balance recorded a deficit of $1.233 billion. However, the cumulative deficit including this period narrowed to $0.95 billion.

The Ministry of Trade, Industry and Energy forecasted that the impact of the shortage of working days will lessen in the remaining period, and exports tend to increase toward the end of the month, leading to simultaneous improvement in exports and the trade balance. Trade Policy Officer Jo said, "Until the 20th of this month, the number of working days was 2.5 days fewer than last year due to the Lunar New Year holiday, but overall for February, the shortage will reduce to 1.5 days. We expect exports to gradually improve and maintain a positive trend throughout February."

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