Korea's exports rise for 12th straight month, boosted by semiconductor surge

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Korea's exports rise for 12th straight month, boosted by semiconductor surge

Published: 01 Oct. 2024, 10:08 Updated: 01 Oct. 2024, 18:25

CHO YONG-JUN
cho.yongjun1@joongang.co.kr

Containers at the Busan port on Sept. 30 [YONHAP]

Korea's exports extended their on-year gains for the 12th consecutive month in September, driven by robust semiconductor shipments, data showed Tuesday.

Outbound shipments rose 7.5 percent on year to $58.7 billion last month, according to data compiled by the Ministry of Trade, Industry and Energy.

Imports increased 2.2 percent on year to $52.1 billion, resulting in a trade surplus of $6.66 billion. Korea has maintained a trade surplus for 16 consecutive months.

Semiconductor shipments surged 37.1 percent from the previous year, reaching $13.6 billion, setting a fresh high and maintaining on-year growth for 11 consecutive months.

The ministry attributed the sharp gains to the release of new smartphones, with businesses also expanding investments in AI services.

The global price of dynamic random-access memory (DRAM) and NAND products gained ground in September, it added.

Outbound shipments of automobiles also grew 4.9 percent to $5.5 billion, marking the highest amount for any September.

The growth came despite fewer working days compared with the previous year, due to robust demand for hybrid models in the North American market.

Other major winners included ships, whose exports surged 76.2 percent to $2.3 billion amid stronger demand for premium models, such as liquefied natural gas carriers.

Smartphone exports extended gains for seven straight months as well, rising 19 percent to $1.91 billion, following the release of new models.

Exports of computers more than doubled to $1.5 billion, driven by stronger demand from the United States and Europe amid growth in the AI industry.

Outbound shipments of petroleum products, on the other hand, shed 17.8 percent to $4 billion amid falling global crude prices.

Exports of steel also fell 3.9 percent to $2.7 billion due to heightened global competition.

By destination, exports to China, Korea's top trading partner, increased 6.3 percent to $11.7 billion in September, backed by strong sales of chips and display products.

Shipments to the United States rose 3.4 percent to $10.4 billion, the highest for any September, as stronger sales in chips and computers offset weaker demand from the machinery sector.

Exports to the European Union rose 5.1 percent to $6 billion, driven by strong demand for biohealth and mobile device products, it added.

"The government plans to thoroughly address export-related risks, considering geopolitical uncertainties in the Middle East and the strike at ports on the U.S. eastern coast," Industry Minister Ahn Duk-geun said in a statement.

"In case of a contingency, the government will operate a special monitoring team with the private sector to minimize the negative fallout on exports," Ahn added.

In 2023, outbound shipments had decreased by 7.4 percent on year due to sluggish chip performance and global economic uncertainties.

"In case of a contingency, the government will operate a special monitoring team with the private sector to minimize the negative fallout on exports," Ahn added.

In 2023, outbound shipments had decreased by 7.4 percent on year due to sluggish chip performance and global economic uncertainties.

Update, Oct. 1: Further details on sector performances and Ahn Duk-geun comments

BY CHO YONG-JUN, YONHAP [cho.yongjun1@joongang.co.kr]