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Exports surge 11% on chip demand, trade balance in $700B deficit

Published: 21 Mar. 2024, 10:47

SHIN HA-NEE
[email protected]

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 rose by 11.2 percent on year in the first 20 days of March due to surging global demand for semiconductors, while the trade balance came in at a deficit of $700 billion.

Outbound shipments reached $34.13 billion from March 1 through 20, compared to $30.69 billion during the same period a year earlier, according to the latest data from the Korea Customs Service.

Per-day exports also advanced by 11.2 percent on year to $2.35 billion.

Imports fell by 6.3 percent on year to $34.84 billion during the first 20 days of March, resulting in a trade deficit of $700 million.

Exports, a key economic growth engine, have been on a solid recovery track since late last year after a yearlong downturn.

In February, exports advanced by 4.8 percent on year to $52.4 billion, marking the fifth consecutive monthly gain, driven by strong demand for semiconductors.

The export growth was led by sales of semiconductors, a key export item.

Chip exports jumped 46.5 percent to $6.34 billion from March 1-20.

Semiconductor exports accounted for 18.6 percent of the country's total exports during the cited period, up by 4.5 percentage points from a year earlier amid an industry cycle upturn.

Exports of vessels spiked 370.8 percent on year to $1.27 billion.

Sales of steel products and automotive parts also rose 1.5 percent and 5.2 percent, respectively.

However, auto exports fell 7.7 percent on year to $3.18 billion, and petroleum products also saw exports decline by 1.1 percent to $2.82 billion.

By nation, shipments to China, the No. 1 trading partner, went up 7.5 percent to $6.64 billion, and those to the United States advanced 18.2 percent to $6.61 billion.

Exports to the European Union added 4.9 percent to $3.66 billion, and those to Vietnam climbed 16.6 percent to $3.12 billion. Shipments to Hong Kong spiked by 94.9 percent to $1.46 billion. But exports to Japan decreased by 6.8 percent to $1.33 billion.

The government expects exports to advance by 8.5 percent this year to reach a record high of over $700 billion.

BY SHIN HA-NEE, YONHAP [[email protected]]