S.Korea’s exports fall 2.9% in first 20 days of October; chip sales strong

South Korea’s exports, the country’s main growth driver, fell 2.9% in the first 20 days of October amid falling demand for vehicles and petroleum products and fewer working days, government data showed on Monday.

Korean exports of semiconductors, the country’s top export item, remained strong, however, continuing its double-digit growth trend after turning positive last November.

Chip exports from Asia’s fourth-largest economy grew 36.1% on-year to $7.1 billion in the first 20 days of October, according to the Korea Customs Service. Exports of computer-related devices increased 15.6% from a year earlier.

Korea is home to the world’s two largest memory chipmakers — Samsung Electronics Co. and SK Hynix Inc.

Korea’s total outbound shipments reached $32.77 billion from Oct. 1 to 20, down 2.9% from $33.74 billion a year earlier.

The customs office attributed the export decline to fewer working days – 12.5 days –during the first 20 days of October, compared with 13 days the previous year.

Average daily exports, after taking fewer working days into account, however, rose 1% on-year to $2.62 billion, it said.

Imports shed 10.1% on-year to $33.76 billion, resulting in a trade surplus of about $1.08 billion, higher than the $770 million surplus during the 20 days of September.

GROWING SHARE OF SEMICONDUCTORS

Customs data showed semiconductors accounted for 21.7% of the country's total exports during the 20 days, up 6.2 percentage points from a year earlier, amid a chip industry upturn.

Auto exports fell 3.3% to $3.19 billion, while auto part exports declined 2% to $1.03 billion.

Outbound shipments of steel products decreased 5.5% to $2.24 billion, while exports of petroleum products tumbled 40% to $2.1 billion.

Ship exports fell 16.2% to $1.36 billion.

By country, exports to the US inched down 2.6% to $5.62 billion, while shipments to the European Union and Japan declined 8.9% and 12.6% to $3.16 billion and $14.5 billion, respectively.

Shipments to China grew 1.2% to $7.24 billion, while exports to Vietnam and Taiwan rose by 1.1% and 90% to $3.19 billion and $1.92 billion, respectively.

IMPORTS

Crude oil imports fell 25.5% in the first 20 days of October from a year earlier, while petroleum products and machinery imports shed 13.2% and 9.1%, respectively.

By country, imports from the EU declined the most with a 12.7% on-year drop, followed by an 11.1% drop from China and a 4.8% decline from the US.

In August, the Bank of Korea lowered its gross domestic product growth forecast for 2024 to 2.4% from an earlier estimate of 2.5%, citing weak private consumption and investments at home.

The government expects Korea’s exports to advance 9% this year to reach a record high of over $700 billion.

Write to Kyung-Min Kang at Kkm1026@hankyung.com
In-Soo Nam edited this article.