Mid-September exports dip 1.1% due to fewer working days

(Kim Ho-young)

South Korea’s exports fell 1.1 percent on-year to $35.583 billion in the first 20 days of September 2024, according to preliminary data from the Korea Customs Service released on Monday. The decline was attributed to a reduction in working days caused by the Chuseok holiday, with 13 working days this year compared to 15.5 days during the same period during the previous year.

Adjusting for the decreased number of working days, average daily exports grew by 18 percent, indicating strong underlying demand for Korean goods. With more working days remaining in September 2024 compared to the previous year and a typical uptick in exports toward the month’s end, overall monthly exports are likely to post positive growth.

Semiconductor exports, Korea’s leading export category, increased by 26.2 percent and have been recording double-digit growth rates since November 2023. The surge in demand for information technology devices also led to a 75.6 percent jump in exports of computer peripherals.

In contrast, exports of several major items declined, including passenger cars (-8.8 percent), petroleum products (-5.0 percent), steel products (-9.5 percent), auto parts (-13.3 percent), and ships (-9.3 percent).

By destination, exports to China rose by 2.7 percent to $7.7 billion, maintaining its position as Korea’s largest export market ahead of the United States, where exports fell by 5.9 percent. Exports to Vietnam were up by 1.2 percent, while shipments to the European Union and Japan declined by 15.1 percent and 12.4 percent respectively. Exports to Taiwan saw a significant rise of 79.8 percent.

Imports during the same period fell by 4.5 percent on year to $34.78 billion. While imports of crude oil (-14.8 percent), machinery (-1.4 percent), petroleum products (-6.8 percent), and passenger cars (-21.8 percent) fell, imports of wireless communication devices surged by 73.6 percent due to the launch of new iPhone models. Imports of semiconductors and semiconductor manufacturing equipment also increased by 17.4 percent and 33.7 percent respectively.

The trade balance posted a surplus of $799 million, reversing a deficit of $1.45 billion during the same period in August 2024, when Korea recorded a 15th consecutive month of monthly trade surpluses.