Korea’s exports drop 14.8 percent in the first 10 days of July

[Photo by Yonhap]

South Korea’s overall exports declined by about 15 percent compared with a year ago, as the slump in semiconductor and exports to China continued into early July.

After turning into a surplus last month, the country’s trade balance was in the red through the beginning of this month, bringing the cumulative trade deficit for the year to nearly $29 billion, according to the Korea Customs Service on Tuesday.

From July 1 to 10, exports reached $13.27 billion, marking a 14.8 percent decline from a year earlier. The average daily export value, considering working days, also dropped by 14.8 percent. The number of working days during this period remained the same as last year at seven days.

Monthly exports have been on a declining trend for the past nine consecutive months, starting from October last year.

By item, semiconductor exports dropped by 36.8 percent compared with a year ago.

Semiconductor exports experienced an 11-month continuous decline until last month. Exports of steel products, petroleum products and wireless communication devices also declined versus a year ago. On the other hand, exports of passenger cars and ships increased.

In terms of trade with Korea’s largest trading partner China, exports fell by 20.6 percent. The decline in exports to China has been sustained for over 13 months.

Imports for the July 1-10 period amounted to $15.54 billion, down 26.9 percent, with a trade deficit of $2.28 billion, up from a deficit of $1.43 billion last month. The trade balance had been in deficit for 15 consecutive months from March last year until it returned to surplus last month.

The cumulative trade deficit for the year came to $28.74 billion. With the recent deficit recorded in early July, the cumulative deficit increased versus last month.

The trade balance with China for the first 10 days of this month showed a deficit of $843 million. The trade deficit with China has persisted for nine months since October last year.