Korea's exports grow 5.9% on-year in July on strong chip demand: data
Containers are stacked at a port in Busan, Thursday. Yonhap
South Korea's exports rose 5.9 percent from a year earlier in July thanks to robust global demand for semiconductors, government data showed Friday.
Outbound shipments came to $60.8 billion last month, the highest figure for any July, according to data compiled by the Ministry of Trade, Industry and Energy.
Imports added 0.7 percent on-year to $54.2 billion, resulting in a trade surplus of $6.61 billion.
Semiconductor exports jumped 31.6 percent on-year to $14.71 billion, also making an all-time high for any July, backed by an increase in memory chip prices and solid demand for high-value products, such as high bandwidth memory (HBM) chips and DDR5.
Shipments of automobiles increased 8.8 percent to $5.83 billion thanks to the strong performance in the European Union (EU), Latin America and the Commonwealth of Independent States (CIS), which includes Russia.
Ship exports spiked 107.6 percent on-year to $2.24 billion, marking the fifth consecutive month of on-year increase, driven by robust demand for high-value ships, such as liquefied natural gas (LNG) tankers.
On the other hand, shipments of petroleum and petrochemical products decreased 6.3 percent and 10.1 percent to $4.21 billion and $3.75 billion, respectively.
By destination, exports to the United States went up 1.4 percent on-year to $10.33 billion thanks to strong demand for semiconductors, wireless communications equipment and cosmetics.
Shipments to the Association of Southeast Asian Nations (ASEAN) soared 10.1 percent to $10.91 billion on high chip demand.
Shipments to EU countries expanded 8.7 percent on-year to $6.03 billion on strong exports of automobiles, ships and petroleum products, while those to CIS nations spiked 21.5 percent to $1.22 billion.
Exports to China, on the other hand, went down 3 percent to $11.05 billion on sluggish demand for petrochemical products and wireless communications equipment.
"With the trade deal with the U.S., Korea faces tariff rates equal to or lower than those of our rival countries," Industry Minister Kim Jung-kwan said in a press release, noting Korean companies can now compete in the U.S. market on "equal or even more favorable terms."
"The government will actively support our companies to help them enhance their competitiveness and diversify export destinations in this new and challenging trade environment."