Six Consecutive Months of Export Growth... "Strong Momentum Continues in Q2"

by Ju Sangdon

Published 07 Apr.2024 10:25(KST)

March Exports Up 3.1%

Exports in March recorded an increase of over 3%. The government expects the positive export trend to continue in the second quarter of this year.

According to the Ministry of Trade, Industry and Energy on the 7th, March exports amounted to $56.56 billion, up 3.1% compared to the previous year.

Last month, exports of 7 out of the 15 major export items increased. In particular, IT items (semiconductors, displays, computers, wireless communication devices) all recorded positive growth for the first time in 24 months since March 2022, driving our exports.

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

Semiconductor exports, Korea's largest export item, rose 35.7% to $11.7 billion, surpassing $11 billion and marking the highest performance in 21 months since June 2022 ($12.3 billion), continuing a positive trend for five consecutive months. Exports of displays (16.2%) and computer solid-state drives (SSD, 24.5%) also increased for eight and three consecutive months, respectively. Wireless communication device exports (5.5%) broke a three-month negative streak and turned positive.

Ship exports increased by 102.1%, maintaining a positive trend for eight consecutive months, and biohealth exports (10.0%) also rose for five consecutive months. Petroleum product exports (3.1%) turned positive after one month. Exports of automobiles (-5.0%) and general machinery (-10.0%), which are directly affected by the number of working days, decreased.

Exports increased in 3 out of 9 major export regions. Exports to China, Korea's largest export market, rose 0.4%, recording positive growth in March following January. Especially, daily average exports considering working days ($470 million) increased by 7.1%, maintaining a positive trend for four consecutive months since December last year. Exports to the United States reached $10.9 billion (11.6%), recording double-digit growth and continuing an eight-month consecutive increase, setting a new record for March exports for the third consecutive month following January and February 2024. Exports to Central and South America (14.4%) also continued a positive trend this year, increasing for three consecutive months. Meanwhile, exports to Vietnam (4.4%, 3 months), an Asian production base for Korean IT companies, and Hong Kong (67.8%, 5 months), a logistics hub, also maintained an increasing trend due to strong exports of IT items such as semiconductors.

March imports amounted to $52.28 billion, down 12.3%. Energy imports decreased by 24.4% overall due to reductions in crude oil (-12.8%), gas (-37.4%), and coal (-40.5%) imports. The trade balance recorded a surplus of $4.28 billion, maintaining a surplus for 10 consecutive months.

Exports in the first quarter of this year reached $163.7 billion, up 8.3%. Among the 15 major export items, 10 items including semiconductors (50.7%), automobiles (2.7%), general machinery (0.9%), petroleum products (3.8%), and ships (64.3%) increased. Exports to 4 out of 9 major export regions, including the United States (15.4%) and China (4.4%), also increased. The trade balance recorded a surplus of $9 billion.

Minister of Trade, Industry and Energy Ahn Deok-geun said, "Despite the impact of the Lunar New Year holidays in February and the reduced number of working days in March, our exports continued to show positive growth, and the trade balance in the first quarter improved by more than $30 billion compared to the previous year, leading the growth of our economy." He added, "In the second quarter, we expect the upward trend in exports and the surplus to continue, driven by increased exports of IT items such as semiconductors and ships, as well as the strong export performance of key items like automobiles and general machinery that have continued since last year."