S. Korea adds another $8 bn in trade deficit as of Aug 10 amid losses in trade with China

South Korea has already incurred near $8 billion deficit in trade in the first 10 days of August, or almost $23 billion so far in the year as it continues to lose money in bilateral commerce with its largest trade partner China this year for the first time since normalization of ties, while imports towered over exports regardless of double-digit growth.

According to data released by Korea Customs Service on Thursday, the country’s trade balance logged a deficit of $7.68 billion in the first 10 days of August, widening from $4.7 billion in the same period a year ago.

The deficit streak could extend to the fifth month in a row in August, which would be the longest since December 2007-April 2008 bout. Korea logged a deficit of $2.48 billion in April, $1.61 billion in May, $2.58 billion in June, and $4.67 billion in July.

Korea’s cumulative deficit this year has reached $22.93 billion as of Aug. 10, data showed.

Korea booked $890 million in deficit with China in the first 10 days of August, losing money for the third straight month for the first time in 30 years.

The country’s overall imports added 34.1 percent to $23.4 billion in the cited period, surging faster than exports for the 14th month in a row.

Imports from China rose 29.2 percent, the U.S. 17.4 percent, Japan 10.2 percent, and Saudi Arabia 99.7 percent, while those from the EU fell 5.6 percent and Russia 36.4 percent.

Imports of crude jumped 50.1 percent, chips 44.6 percent, gas 96.4 percent, coal 162.5 percent, automobiles 71.7 percent, and chip manufacturing equipment 23.7 percent.

Imports of crude oil, gas, and coal totaled $6.19 billion in the first 10 days of August, up 74.9 percent from $3.54 billion in the same period a year ago.

The country’s exports from August 1 to 10 totaled $15.7 billion, up 23.2 percent from the same period a year ago. Average daily export increased 8.7 percent on year based on 8.5 working days, a day shorter than a year earlier.

Outbound shipments of mainstay items gained, with exports of petrochemical products climbing 177 percent in the first 10 days of August from a year ago, automobiles 191.9 percent, steel products 26.3 percent, automobile components 29.4 percent, and precise machinery 9.5 percent. Exports of chips, on the other hand, fell 5.1 percent, wireless communications devices 17.7 percent, and computer surrounding equipment 19 percent.

Exports to the United States was up 17.5 percent during the cited period, the European Union 66.2 percent, Vietnam 10.2 percent, and Singapore 169.2 percent while those to China fell 2.8 percent and Hong Kong 44.4 percent.

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