Exports in April top $56 billion as growth streak hits 7 months

Containers for exports are stacked at a pier in the southeastern port city of Busan in this file photo taken on Jan. 1, 2024. [YONHAP]

Korea's exports extended their growth streak in April to a seventh consecutive month, data showed Wednesday.

Robust chip demand and record car exports drove the figure, bringing the country's trade balance to a surplus for the 11th straight month.

Outbound shipments increased 13.8 percent on year to $56.2 billion last month, according to data compiled by the Ministry of Trade, Industry and Energy.

Imports gained 5.4 percent from the previous year to $54.7 billion in April, resulting in a trade surplus of $1.53 billion.

By sector, exports of chips soared 56.1 percent on year to $9.96 billion, maintaining growth for six straight months. The ministry attributed the expansion to the strong demand for premium memory chips for servers.

Outbound shipments of display products also increased 16.3 percent over the period to reach $1.43 billion, led by robust demand for mobile devices in the United States and the European Union.

Car exports reached an all-time high as well, rising 10.3 percent from a year earlier to $6.79 billion in April, surpassing the previous record of $6.53 billion posted in November 2023. The increase was led by eco-friendly models and electric vehicles.

Shipments of petroleum products rose 19 percent to $4.36 billion as export prices gained ground, in line with the recent hike in global crude prices.

By destination, exports to the United States set a fresh record at $11.4 billion in April, up 24.3 percent from a year earlier, on the back of strong demand for chips and automobiles.

Shipments to the world's top economy extended gains to nine straight months.

Exports to China also moved up 9.9 percent over the period to $10.5 billion, the data also showed, as the demand for chips offset losses in machinery, which was hurt by a slump in the property market.

The semiconductor-driven growth shows a marked improvement over last year, with exports in 2023 posting a decrease of 7.4 percent on year on the back of sluggish performance of chips coupled with global economic uncertainties.

"April's trade surplus came despite high volatility in crude prices, foreign exchange rates and logistics costs in the face of the prolonged conflict between Israel and Iran, along with the Red Sea crisis," Industry Minister Ahn Duk-geun said.

"Exports of IT products, such as chips, along with cars, machines and ships, are anticipated to remain strong throughout the second quarter," he added, noting that the government plans to roll out support measures to maintain the momentum.

BY SHIN HA-NEE, YONHAP [shin.hanee@joongang.co.kr]