Korean exports jump 4.8% in February as chips recovery continues

Containers for exports and imports are piled at a pier in the southeastern port city of Busan on Jan. 1, 2024. [Yonhap]

Korea’s exports grew 4.8 percent in February on-year, rising for the fifth straight month on the recovery of chips.

Exports in February stood at $52.4 billion, helped by the outbound shipments for semiconductors that jumped 66.7 percent last month, according to data compiled by the Ministry of Trade, Industry and Energy on Thursday.

Chip exports grew for the fourth straight month and marked the sharpest increase since the 69.6 percent growth tallied in October 2017, adding to the optimistic outlook for growth this year.

Outbound shipments of display and solid-state drives also rose 20.2 percent and 18.4 percent, respectively, on-year. Exports of vessels advanced 27.7 percent while those for automobiles, which led Korea’s exports last year, fell 7.8 percent over the same period.

The ministry said the fall in car exports is temporary, citing the reduced number of working days due to the new year holiday and the maintenance of the production line.

Exports grew despite the reduced number of working days in February compared to last year as the new year holiday fell in January in 2023, said the ministry.

The seasonal factor of reduced import demand from China because of its new year holiday last month also did not stop the growth of Korea's exports, "which showed Korea's outbound shipments are continuing to show momentum to move upward," it added.

Exports to China, Korea’s largest trading partner, fell 2.4 percent on-year in February. However, it was the first trade surplus with China since September 2022.

Exports to the United States rose 9 percent, rising for seven consecutive months, while those for Japan also edged up 1 percent, up for five straight months.

Imports decelerated 13.1 percent on year to $48.1 billion in February, driven by a 21.2 percent decline in energy imports. Inbound shipments for crude oil edged up 0.9 percent, but those for gas and petroleum plunged 48.6 percent and 17.3 percent, respectively.

Korea reported a trade surplus of $4.29 billion last month, staying in the positive territory for nine straight months. Korea's annual export goal is for it to reach $700 billion.

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