South Korea Exports

Exports from South Korea plunged 11.7 percent year-on-year to USD 44.70 billion in September 2019, worse than market expectations of 11.2 percent fall and following an upwardly revised 13.8 percent drop in the prior month. This marked the tenth straight month of yearly decline in overseas sales, amid deteriorating external conditions, including the US-China trade dispute. Exports of semiconductors and petrochemicals decreased while those of automobiles, ships, and bio-health products increased. Among major trade partners, exports to China went down 21.8 percent; those to the US dropped 2.2 percent; and to Japan fell 5.9 percent. Conversely, exports to the Commonwealth of Independent States surged 41.3 percent.

Exports from South Korea tumbled 13.6 percent year-on-year to USD 44.20 billion in August, in line with market expectations and following a 11 percent fall in the prior month. This marked the ninth straight month of yearly decline in overseas sales, amid deteriorating external conditions, including the US-China trade dispute and Japan’s tighter restrictions on exports to South Korea. Exports of semiconductors, petrochemicals, and petroleum products decreased while those of secondary batteries, agricultural products and fisheries, and cosmetics increased. Among major trade partners, exports to China went down 21.3 percent and those to the Central and South America inched down 18.3 percent. Meanwhile, exports to the CIS gained 8.8 percent and those to ASEAN were up 1.9 percent.

Exports from South Korea plunged 11 percent from a year earlier to USD 46.14 billion in July 2019, the eighth consecutive month of declines and largely in line with market forecasts of 11.3 percent drop. The year-long China-US trade war and recent Japan's export restrictions hurt demand for Korean goods, alongside a slowdown in the semiconductor sector and falling chip prices, and the petrochemical and petroleum product industries that are under pressure due to the stagnant recovery of oil prices. Shipments of semiconductors, petrochemicals, and petroleum products slumped, while those of automobiles, auto parts, and home appliances increased. Among major trade partners, decreases were seen in exports to China and the US, but increases were experienced in shipments to the EU, ASEAN, and CIS countries.

Exports from South Korea declined by 13.5 pct year-on-year to USD 44.18 billion in June 2019, worse than market consensus of a 12 pct drop and faster than an upwardly revised 9.5 pct fall in May. It marked the seventh straight month of contraction in overseas sales, amid weakening global demand and the prolonged Sino-US trade row. Sales of semiconductors tumbled 25.5 pct, due to a fall in prices of memory chips, coupled with the weaker demand for smartphone around the world. In addition, exports of petrochemicals shrank 24.5 pct. On the other hand, sales of ships surged 46.4 pct. Also, exports of cars rose 8.1 pct Exports to China, the largest trading partner for Asia's fourth-largest economy, slumped 24.1 pct, the steepest yearly fall since May 2009, when exports dropped by 25.6 pct. Also, sales to the EU declined 3.1 pct, due to the sluggish economy of Germany. In addition, outbound shipments to the US decreased 2.5 pct, led by lower sales of chips and mobile devices

Exports from South Korea declined by 9.4 pct year-on-year to USD 45.91 billion in May 2019, worse than market consensus of a 5.6 pct drop and much faster than a 2.0 pct fall in April. It marked the sixth straight month of contraction in overseas sales, amid weakening global demand and the prolonged Sino-US trade row well as Brexit uncertainties. Sales of semiconductors tumbled 30.5 pct. In addition, exports of petrochemicals shrank 16.2 pct. On the other hand, sales of ships jumped 44.5 pct. At the same time, shipments of machinery grew 5 pct, with auto exports increasing 13.6 pct. Also, exports rose for rechargeable batteries, electric cars, and organic light-emitting diode (OLED) displays. Exports to China, the largest trading partner for Asia's fourth-largest economy, nosedived 20 pct, the steepest yearly fall since January 2016. Also, sales to the EU fell 12.6 pct. In contrast, outbound shipments to the US advanced 6 pct, led by higher sales of automobiles and home appliances.

Exports from South Korea declined by 8.2 percent year-on-year to USD 47.11 billion in March 2019, following an upwardly revised 11.4 percent fall in February which was the steepest fall in three years, and compared with market consensus of a 8.7 percent drop. The decrease in last month’s exports was mostly due to combined effects of external risks and cyclical factors, including slowing global economy, trade dispute between US and China and growing protectionism. Sales of memory chips fell 16.6 pct, as global demand for smartphone slowed on low seasonal demand. Also, exports dropped for petrochemicals (-10.7 pct). In contrast, sales of ships rose 5.4 percent, namely drill ships and liquefied natural gas carriers. Exports to China, South Korea's top trading partner, shrank 15.5 pct, and to Japan declined 12.8 pct, due to declining demand of semiconductors and steel. By contrast, exports to the US grew 4 pct, mainly driven by automobile, machinery and petrochemical products.