Monthly exports set for growth in June for 1st time in 10 months

Sales of ships and cars surge, while chips and petroleum products decline; trade deficit decreases

Containers unloading in Busan, South Korea (Courtesy of Yonhap News)
Containers unloading in Busan, South Korea (Courtesy of Yonhap News)
Kyung-Min Kang 2
2023-06-21 18:59:30 kkm1026@hankyung.com
Economy

South Korea’s exports in the first 20 days of June rose from a year earlier, seeing growth in the period for the first time since last August. The trade balance in the first 20 days of a month, which has been in deficit since December 2021, is now seeing a decline in losses.

The exports between June 1 and 20 reached $32.9 billion, up 5.3% on-year, according to Korea Customs Service’s preliminary report on Wednesday.

It is the first time that exports in the first 20 days of the month have increased on-year, since last August when the figure hit 3.7%. Monthly exports steadily declined from last October to May of this year due to sluggish sales of chips and petroleum products.

“The exports in the first 20 days of a month are short-term statistics, which are easily affected by working days. It is hard to say whether the monthly exports in June will increase from a year earlier,” a Korea Customs Service official stated.

SHIPS, CARS, AUTO PARTS EXPORTS UP

Ship and cars were the key growth drivers of exports between June 1 and 20. Sales of ships and cars during the period soared by 148.7% and 110%, respectively, from a year ago. Auto parts sales logged a 15.1% increase in the same period.

Exports of chips, the country’s major products, fell by 23.5%. Petroleum product sales overseas dropped by 36%.

The first-20-day exports to China, one of Korea's largest trade partners, declined 12.5% from a year ago. Korea’s monthly exports to China reduced for the 12th consecutive month in May. Exports to Taiwan between June 1 and 20 also declined 38.5% from a year ago.

On the other hand, sales to the European Union, the US and Japan for the 20 days of June increased 26.4%, 18.4% and 2.9%, respectively, on-year.

Korea posted $34.5 billion in imports between June 1 and 20, down 11.2% from a year earlier. Purchases of crude oil, coal and gas dropped 34%, 34.3% and 8.8%, respectively. 

The country saw a $1.6 billion trade deficit in the 20 days of this month, of which China accounted for 69.1%.

The trade loss in the 20 days of this month has been the lowest since the trade balance turned to the red in December 2021.

The cumulative trading losses between January 1 and June 20 of this year reached $29 billion, some 60.8% of the record-high deficit last year.

Write to Kyung-Min Kang at kkm1026@hankyung.com
 

Jihyun Kim edited this article.
#Korea trade balance #Korea-China trade #Korea trade deficit #Korea semiconductor export #Korea car parts export #Korea petroleum export #Korea Customs Service

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