July exports continue uptick led by semiconductors

[Photo by Yonhap]

South Korea’s exports maintained an upward trend in early July 2024 that was primarily driven by semiconductors, although an increase in imports resulted in a trade deficit.

According to provisional data from the Korea Customs Service on Thursday, exports from July 1st to 10th, 2024, totaled $17.75 billion, up 33.8 percent from the same period during the previous year. Adjusted for the number of working days, the average daily export value rose by 10.2 percent and there were 8.5 working days during this period, 1.5 more than last year.

Monthly export values have been rising for nine consecutive months from October 2023 to June 2024. By item, chip exports surged 85.7 percent, with monthly chip export values recording double-digit growth since November 2023.

Exports of passenger cars, petroleum products, and steel products increased by 9.8 percent, 40.5 percent, and 24.2 percent respectively. Exports of ships and computer peripherals fell by 37.5 percent and 14.1 percent respectively.

By country, exports to China rose by 29.1 percent, the United States by 26.4 percent, and the European Union by 26.2 percent. Exports to China totaled $3.55 billion, surpassing those to the United States at $3.22 billion.

Imports during the same period reached $19.7 billion, up 26.7 percent. Imports of semiconductors, crude oil, and machinery increased by 35.1 percent, 21.3 percent, and 17.3 percent respectively. Imports from China grew by 28.7 percent, the United States by 43.4 percent, and the EU by 29.0 percent.

The trade deficit stood at $1.96 billion, while the trade deficit in the first 10 days of June 2024 was $737 million. The monthly trade balance had been in surplus for 13 consecutive months until last month, and the trade deficit with China was $1.07 billion.

“Despite seasonal factors such as summer vacations, exports in July are expected to maintain an upward momentum led by information and technology items, and the trade balance is expected to improve by the end of the month,” the Ministry of Trade, Industry, and Energy said.