Containers for exports and imports are stacked at a pier in the southern port city of Busan in this file photo taken on Oct. 11, 2023. (Image courtesy of Yonhap)
SEJONG, Nov. 1 (Korea Bizwire) — South Korea’s exports moved up on-year for the first time in 13 months in October, driven by robust automobile shipments, along with signs of improvement in the chip sector, data showed Wednesday.
Outbound shipments moved up 5.1 percent on-year to US$55 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy
The country also logged a trade surplus of $1.64 billion in October, the fifth straight gain.
Imports fell 9.7 percent on-year to $53.4 billion last month, the data also showed.
By sector, exports of automobiles moved up 19.8 percent over the period to $5.88 billion, leading the overall gain. It marked 16 consecutive months of on-year growth.
The robust gains from cars came on the back of strong demand from North America and Europe, especially for SUVs and eco-friendly models.
Exports of petroleum products also increased 18 percent to $5.26 billion, while those of petrochemical goods shed 3.2 percent to $3.61 billion.
Other major winners include ships, with their exports more than doubling on-year in October to reach $2.83 billion.
Outbound shipments of semiconductors, the backbone of Asia’s No. 4 economy, decreased 3.1 percent to $8.94 billion. Nevertheless, the decline represents the most modest drop since August 2022, igniting optimism for recovery down the road.
The ministry said while global chip sales remain sluggish, shipments have been improving on the back of the release of new smartphones along with the demand for artificial intelligence servers.
By destination, exports to the United States moved up 17.3 percent to $10.1 billion, marking the highest amount for any October, following the strong demand for cars, machinery products and mobile devices.
Outbound shipments to China, the top trading partner, fell 9.5 percent on-year to reach $11 billion, due to the sluggish performance of steel products and display panels.
South Korea’s exports to the European Union shed 10.7 percent to $5 billion over the period as well, as weaker demand for steel and machinery offset gains from pharmaceutical goods.
“Exports have posted growth while maintaining a trade surplus despite challenging external conditions, including high borrowing costs, the U.S.-China tension, the Israel-Hamas conflict and high oil prices,” Industry Minister Bang Moon-kyu said.
“We will spare no effort to have exports maintain the upward momentum through the end of this year,” he added.
Bang said the government will continue to make efforts to prevent other potential risks, including China’s export control of graphite, from giving adverse impacts on South Korea’s outbound shipments.
Exports had been posting an on-year decrease since October 2022 through September amid aggressive monetary tightening by the United States and other major economies to bring inflation under control and a global economic slowdown.
(Yonhap)
