Korea's trade conditions worsen as semiconductor, chemical exports plummet

Containers stacked up at a port in Incheon on Feb. 21. [NEWS1]

Korea’s trade conditions worsened for the 22nd month in January as exports of semiconductors and chemical products fell rapidly.

The country's net barter terms of trade in January fell 5.2 percent on year in January, according to the Bank of Korea on Tuesday.

Net barter terms of trade measures the relative prices of a country’s exports and imports. If the index increases, exports become more expensive, or its imports become cheaper.

The country’s export volume index was down by 13.0 percent on year, and the import volume index down 1.2 percent in the same period.

The export value index decelerated 18.3 percent during the same period as well, and the import value index was down by 2.1 percent.

“The export indexes largely fell in January as a slowdown in the IT economy intensified, centered on semiconductors,” said Seo Jung-seok, head of Bank of Korea’s Price Statistics Team, on Tuesday.

Seo noted exports of transportation equipment, coal and petroleum goods increased in the same month.

Korea’s trade balance in January stood at a deficit of $12.7 billion amid strong inflation, high interest rates and a high base effect from the previous year’s record-breaking January exports.

Finance Minister Choo Kyung-ho said Tuesday that Korean companies should see their exports jump with the reopening of China’s economy following the lifting of Covid lockdowns.

BY JIN MIN-JI [jin.minji@joongang.co.kr]