Korea’s early September exports up 25% thanks to semiconductors

[Photo by Kim Ho-young]

South Korea’s exports had a strong start in early September 2024, increasing by 25 percent year-on-year as semiconductor shipments, which were up more than 30 percent, lead the way. Passenger car exports also contributed to the growth with a double-digit increase.

According to preliminary data released by the Korea Customs Service on Wednesday, exports from September 1st to 10th totaled $18.57 billion, up 24.6 percent compared to the same period in 2023. Daily average exports, adjusted for the 7.5 working days - 0.5 more than 2023 - increased by 16.3 percent. This marks the 11th consecutive month of export growth since October 2022 and the positive trend continued into the beginning of September.

Semiconductor exports surged by 38.8 percent to $3.47 billion, making up 18.7 percent of total exports. The sector has seen continuous growth since April 2024, maintaining a monthly increase of over 50 percent for four months and nearly 40 percent in August, driving overall export performance.

Other key export items included passenger cars, up 12.8 percent, and ships, which saw a significant 170.5 percent rise. However, wireless communication devices experienced a 2.4 percent decline.

Regionally, Korea’s overseas shipments to its two largest markets - China and the United States - increased. Exports to China rose 16.3 percent to $3.94 billion, while shipments to the United States grew 24.6 percent to $3.22 billion during the same period.

Imports also grew by 11.3 percent, reaching $18.35 billion in the first 10 days of September. Key import categories like semiconductors (up 54.6 percent) and machinery (up 36 percent) saw increases, while imports of crude oil and petroleum products fell by 18.2 percent and 28.4 percent respectively.

Korea posted a trade surplus of $222 million during the period, a turnaround from the $2.95 billion deficit in early August 2024. The country has maintained a monthly trade surplus for 15 consecutive months since June 2023.