Exports increase l in July, continue 10-month uptick

[Photo by Yonhap]

South Korea’s exports rose 13.9 percent in July, continuing their positive year-on-year monthly export growth trend that it has mIntained for 10 consecutive months since October 2023.

According to the July 2024 trade data released by the Ministry of Trade, Industry and Energy on Thursday, the export amount totaled $57.49 billion in July, up 13.9 percent from the same month during the previous year.

Among the top 15 export items, exports of 11 items increased while some items, such as automobiles, saw a decline.

Semiconductor exports, the nation’s largest export item, totaled $11.2 billion. While this was down slightly from the previous month‘s record high of $13.42 billion, it was still the second highest figure for July on record. Chip exports have also increased for nine consecutive months, and the growth rate of chip exports exceeded 50 percent for a fourth consecutive month since April 2024.

In contrast, automobile exports fell 9.1 percent to $5.4 billion in July from a year earlier. The decline is likely to have been influenced by the summer vacation period in the auto industry, according to the trade ministry.

By region, exports increased in eight of nine major markets, with a notable rebound in exports to China.

Exports to China in July totaled $11.4 billion, up 14.9 percent from a year earlier and the highest figure since October 2022 ($12.2 billion). Exports to the United States also rose 9.3 percent to $10.2 billion, the highest level for July to date.

As the information and technology sector shows signs of improvement, exports of intermediate goods such as semiconductors have increased, and cumulative exports to China from January to July 2024 hit $74.8 billion, surpassing those to the United States ($74.5 billion) to become the top export destination again. The United States was Korea’s largest export destination ($64.3 billion) in the first half of 2024, followed by China ($63.4 billion).

Korea‘s imports in July totaled $53.88 billion, up 10.5 percent from a year earlier and as a result, the trade balance for July showed a surplus of $3.62 billion. The monthly trade balance has been in surplus for 14 consecutive months since June 2023. The cumulative trade surplus for the first seven months of 2024 is $26.7 billion, the highest since 2018.

“With exports up 13.9 percent year-on-year in July, the second half of the year is off to a strong start, with growth in both items and regions. The government will focus on concentrating available resources to expand exports and achieve our goal of a record export performance for 2024,” Minister Ahn Duk-geun said.