Exports surge 11% on chip demand, trade balance in $700B deficit

Korea's exports rose by 11.2 percent on year in the first 20 days of March due to surging global demand for semiconductors, while the trade balance came in at a deficit of $700 billion.

Containers for exports and imports are piled at a pier in the southeastern port city of Busan on Jan. 1, 2024. [Yonhap]

Korea's exports rose by 11.2 percent on year in the first 20 days of March due to surging global demand for semiconductors, while the trade balance came in at a deficit of $700 billion.

Outbound shipments reached $34.13 billion from March 1 through 20, compared to $30.69 billion during the same period a year earlier, according to the latest data from the Korea Customs Service.

Per-day exports also advanced by 11.2 percent on year to $2.35 billion.

Imports fell by 6.3 percent on year to $34.84 billion during the first 20 days of March, resulting in a trade deficit of $700 million.

Exports, a key economic growth engine, have been on a solid recovery track since late last year after a yearlong downturn.

In February, exports advanced by 4.8 percent on year to $52.4 billion, marking the fifth consecutive monthly gain, driven by strong demand for semiconductors.

The export growth was led by sales of semiconductors, a key export item.

Chip exports jumped 46.5 percent to $6.34 billion from March 1-20.

Semiconductor exports accounted for 18.6 percent of the country's total exports during the cited period, up by 4.5 percentage points from a year earlier amid an industry cycle upturn.

Exports of vessels spiked 370.8 percent on year to $1.27 billion.

Sales of steel products and automotive parts also rose 1.5 percent and 5.2 percent, respectively.

However, auto exports fell 7.7 percent on year to $3.18 billion, and petroleum products also saw exports decline by 1.1 percent to $2.82 billion.

By nation, shipments to China, the No. 1 trading partner, went up 7.5 percent to $6.64 billion, and those to the United States advanced 18.2 percent to $6.61 billion.

Exports to the European Union added 4.9 percent to $3.66 billion, and those to Vietnam climbed 16.6 percent to $3.12 billion. Shipments to Hong Kong spiked by 94.9 percent to $1.46 billion. But exports to Japan decreased by 6.8 percent to $1.33 billion.

The government expects exports to advance by 8.5 percent this year to reach a record high of over $700 billion.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]