Korea's exports decline for a second straight month in November

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Korea's exports decline for a second straight month in November

Published: 01 Dec. 2022, 14:36 Updated: 01 Dec. 2022, 19:19

Cargo trucks in Euiwang, Gyeoonggi, on Thursday. Amid exports shrinking for a second month, the railroad union joined cargo truckers on a nationwide strike. [YONHAP]

Exports fell for a second consecutive month in November while Korea's trade balance was negative for an eighth month as energy imports remained high and semiconductor exports dropped dramatically.

Strikes by truckers and railway workers could make the situation worse.

According to the Ministry of Trade, Industry and Energy on Thursday, Korea’s exports in November fell 14 percent year-on-year to $51.9 billion.

In October, exports were down 5.7 percent.

Through November, Korea's exports for the year totaled $629.1 billion, up 7.8 percent on year and a record.

Imports last month grew 2.7 percent year-on-year to $58.9 billion. Imports have been growing for 12 consecutive months.

The trade deficit for November was $7 billion.

“The prices of semiconductors, which is a key export item, have continued to fall,” said Moon Dong-min, deputy minister of trade and investment. “The base effect of a 31.9 percent year-on-year increase in exports in November 2021 also affected last month’s export drop.”

The trade ministry official noted that the truckers strike has also played a significant role.

“Basically there has been a significant decline in export cargos carried in and out of our ports,” Moon said. “This indicates that export activities are not operating normally.”

The official said at this point it is difficult to give a specific figure for the damage that had been caused by the trucker strike or quantify the impact.

While the deputy minister stressed Korea has fared relatively well, with exports set to break last year’s record, the biggest risk factor is the trucker strike.

“On top of the difficult situation that our exporters are facing amid global economic stagnation, an impact on exports will be inevitable for December if the truckers continue to refuse to deliver,” Moon said.

Semiconductor exports fell 30 percent year-on-year to $8.5 billion. Chips are Korea's biggest export category.

Ship exports declined 68.2 percent to $1.1 billion, while computer exports fell 50.1 percent and petrochemical exports were down 26.5 percent. Steel export fell 10.6 percent.

Automobile exports grew 31 percent to $5.4 billion, and petroleum goods exports were up 26 percent to $4.9 billion.

By market, exports to the United States continued to rise for the 27th straight month, rising 8 percent to $8.8 billion.

Exports to the EU rose 0.1 percent to $5.3 billion.

Exports to China fell 25.5 percent to $11.4 billion, while exports to Asean shrunk 13.9 percent to $9 billion. Exports to Japan dropped 17.8 percent to $2.3 billion.

Energy continued to be a major contributor to the increase in imports.

Last month, imports of crude oil, gas and coal totaled $15.5 billion, which is a 27.1 percent increase on year.

The accumulated import total for the three energy sources in the first 11 months was $174 billion, a 75 percent increase.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]