S.Korea July exports jump to record

Aug 02, 2021, 07:51 am

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Source: The Ministry of Industry, Trade and Energy

AsiaToday reporter Lee Sang-won

South Korea’s exports set a new monthly high for the first time in 65 years since the country started compiling related data in 1956. Major export items such as automobiles, chips and petrochemicals all showed double-digit growth for two consecutive months, with export volume for emerging industry items showing the highest level.

According to the data released Sunday by the Ministry of Industry, Trade and Energy (MOTIE), exports rose 29.6% in July from the same month a year earlier to $55.43 billion, extending export growth to a ninth consecutive month. It showed a growth rate of more than 20% for four consecutive months for the first time in 10 years. The cumulative export amount over the first seven months of 2021 came to $358.7 billion, also setting a fresh high.

This is mainly due to high export of major export items, including automobiles, semiconductors and petrochemicals. All the 15 items recorded an increase for two consecutive months, while 13 of them showed double-digit growth. July exports of automobiles increased 12.3% to $4.1 billion following the eased supply shortages of automotive chips and improved sales of SUVs and eco-friendly vehicles. Exports of semiconductors increased 39.6% thanks to increased demand of memory chips for servers, topping $10 billion for three months in a row. Exports of petrochemical products also rose 12.3% to $4.72 billion due to a surge in demand for packaging materials and protective equipment.

Exports of emerging industry items, including bio-health products and rechargeable batteries also contributed positively. Their cumulative exports from January to July of 2021 all set new highs.

By destination, exports to nine major regions increased for four consecutive months In particular, exports showed double-digit growth rates for two consecutive months from June to July, which marks the first time in 17 years since 2004. The July exports to major overseas markets including China, the United States, the European Union (EU) and ASEAN was higher than any other Julys in the history.

Last month, imports soared 38.2% to $53.6 billion, resulting in a trade surplus of $1.76. It marks the 15th consecutive month for the country to post a trade surplus. The trade ministry predicted that demand recovery for chips and petroleum products, increased price, and promotion of high value-added export items will continue for a while, which will have a positive effect on the continued upward trend of Korean exports after the third quarter.

“It is a valuable achievement that the export portfolio has strengthened as both traditional major industries including semiconductors and automobiles as well as emerging industries including bio-health and secondary batteries have grown evenly,” said trade minister Moon Sung-wook. “South Korea is still expected to face some hurdles, including the spread of variant strains of the virus, along with supply shortages of parts and the hike in the price of raw materials,” he added.

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