Korea’s exports hit 17-month high in Dec. on strong demand for chips, vehicles

[Photo by Kim Ho-young]

South Korea’s exports gained for the third straight month in December, driven by strong demand for automobiles and semiconductors.

According to data released by the Ministry of Trade, Industry and Energy on Monday, outbound shipments rose 5.1 percent from a year earlier to $57.66 billion in December. Imports fell 10.8 percent to $53.18 billion.

Exports, which turned positive from October, continued to grow for three consecutive months in December, with a trade surplus of $4.48 billion.

Korea’s exports hit a 17-month high in December, with daily exports, which takes into account the number of working days, jumping 14.5 percent on year, the highest growth in 18 months.

Exports of chips reached $11.03 billion in December, the highest performance in 2023. It was the second straight month of year-on growth.

Industry analysts attribute this development to market stabilization driven by production cuts and price increases.

In particular, Samsung Electronics Co. raised DRAM prices by 10 to 15 percent. It is expected to raise NAND flash prices by 20 percent by the second quarter of 2024.

As the semiconductor industry recovers, there are high hopes that exports will continue to rise in 2024.

“The fact that semiconductor exports exceeded $10 billion in December for the first time in 15 months serves as a barometer to judge the recovery of semiconductor exports,” said Trade Minister Bang Moon-kyu.

Exports of automobiles, which sustained exports throughout 2023, also continued to show growth in December, marking 18 consecutive months of year-on-year increases.

Additionally, exports of general machinery rose for nine consecutive months, home appliances for seven months, and ships and displays for five months.

For the full year, exports totaled $632.69 billion, down 7.4 percent from the previous year. Imports fell 12.1 percent to $642.67 billion, resulting in a trade deficit of $9.97 billion.