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Environment for Korean exports unfavorable amid global expansion of protectionism: ministry

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Containers are skacked to be shipped at a port in Busan, Feb. 12. Yonhap

Containers are skacked to be shipped at a port in Busan, Feb. 12. Yonhap

Circumstances surrounding Korea's exports continued to worsen this month due to a decrease in the prices of semiconductors and petroleum products, coupled with a global trend toward protectionism, the industry ministry said Thursday.

"External circumstances surrounding exports are not easy due to the weakening of prices of our major export products, such as semiconductors and petroleum products, and sluggish global demand in February," First Vice Industry Minister Park Sung-taek said in a meeting held to check on the export trend and related risks.

"In particular, protectionist trade policies are rapidly expanding across the globe as major economies are immediately responding to the new U.S. administration's trade policies, including tariffs," he added.

In January, Korea's exports snapped their 15 straight months of on-year increases, largely due to a reduced number of business days as the Lunar New Year holiday fell in the month, unlike in 2024 when it fell in February.

Outbound shipments fell 10.3 percent from a year earlier to $49.1 billion, with petroleum products posting the biggest drop of 29.8 percent among 15 major sectors.

Park said the industry ministry will swiftly implement support measures for export industries drawn up by the government earlier this week to reduce uncertainties for local businesses, and prepare additional response measures for tariff plans of the Donald Trump administration.

The government announced Tuesday a set of support measures, including a record 366 trillion-won ($253.9 billion) trade financing scheme, for export firms expected to suffer damage from global trade uncertainties sparked by U.S. tariffs.

Earlier Thursday, the industry ministry also held a meeting with officials from major industries to discuss the possible impact of proposed U.S. tariffs on steel, aluminum, automobile and other imports, and devise a response strategy. (Yonhap)