By Yoon Ja-young
The country's exports jumped 35 percent from a year earlier to a record $55.1 billion in September on the booming semiconductor industry coupled with the global economic recovery.
Semiconductor and display production lines are in full operation during the long Chuseok holidays to meet demand.
According to the Ministry of Trade, Industry, and Energy on Sunday, outbound shipments extended their upward trend for 11 consecutive months, with the monthly figure being the biggest since 1956 when the country started compiling data.
Korea had double-digit growth in most key exports items, including steel, semiconductors, automobiles and petrochemical products. Outbound shipments of semiconductors stood at a record $9.7 billion, up 70 percent.
Soaring DRAM prices and the launch of new smartphones were behind the surging figure. Steel exports also doubled to the record $4.7 billion.
"Exports of high-value-adding goods continued expanding, with items such as multiple chip packages (MCP), organic light emitting diodes (OLED) and solid state drives (SSD) posting record-high export figures," the ministry noted in a press release.
The ministry added that longer working days in September compared with the previous year and advanced shipments ahead of the long Chuseok holidays this year also contributed to the remarkable export growth.
Production lines at Samsung Electronics, Samsung Display, SK Hynix and LG Display are all continuing to operate during the Chuseok holidays.
Samsung Electronics and SK Hynix, which make up 70 percent of the global memory chip market, are expected to record 48 trillion won earnings in the semiconductor business this year.
Shipments increased for most export markets, including emerging markets such as ASEAN and India. Exports to ASEAN countries totaled a record $9.1 billion, with more Korean companies setting up production facilities there and importing components.
Shipments to India also posted double-digit growth for nine months in a row. Exports to China, Korea's biggest trading partner, rose 23.4 percent.
Meanwhile, imports rose 21.7 percent to $41.4 billion, an increase for 11 consecutive months. Imports of semiconductor manufacturing equipment increased as companies expanded their investments in the chip industry. Imports of natural resources such as coal and zinc ore also pulled up the total.
The total trade balance was $13.8 billion surplus. Korea had an $840 million increase in its trade surplus against the U.S. in September despite increasing imports of agricultural products, LPG, chip manufacturing equipment, automobiles and planes.
The ministry pointed out that Korea's exports to the U.S. in September last year had been hit by a strike at automobile plants as well as a recall of the smartphone. The trade surplus against the U.S. between January and September contracted 23.9 percent from the previous year.
"The continuing recovery in the U.S., China and the E.U. as well as increasing manufacturing production and the booming IT industry will work favorably in global trade," the ministry noted.
Meanwhile, global protectionism and the U.S. Fed's moves to tighten monetary policy, plus fluctuating foreign exchange rates and fewer working days in October compared with the year before will work as risks.
Trade, Industry and Energy Minister Paik Un-gyu said that exports should not seek just quantitative growth.
"The ministry will continue efforts to innovate our exports structure so it can create jobs and lead to growth of SMEs," he said.
Experts have been pointing out that rising exports have not been contributing to the local economy as much as expected due to the transfer of production overseas.
The country's exports jumped 35 percent from a year earlier to a record $55.1 billion in September on the booming semiconductor industry coupled with the global economic recovery.
Semiconductor and display production lines are in full operation during the long Chuseok holidays to meet demand.
According to the Ministry of Trade, Industry, and Energy on Sunday, outbound shipments extended their upward trend for 11 consecutive months, with the monthly figure being the biggest since 1956 when the country started compiling data.
Korea had double-digit growth in most key exports items, including steel, semiconductors, automobiles and petrochemical products. Outbound shipments of semiconductors stood at a record $9.7 billion, up 70 percent.
Soaring DRAM prices and the launch of new smartphones were behind the surging figure. Steel exports also doubled to the record $4.7 billion.
"Exports of high-value-adding goods continued expanding, with items such as multiple chip packages (MCP), organic light emitting diodes (OLED) and solid state drives (SSD) posting record-high export figures," the ministry noted in a press release.
The ministry added that longer working days in September compared with the previous year and advanced shipments ahead of the long Chuseok holidays this year also contributed to the remarkable export growth.
Production lines at Samsung Electronics, Samsung Display, SK Hynix and LG Display are all continuing to operate during the Chuseok holidays.
Samsung Electronics and SK Hynix, which make up 70 percent of the global memory chip market, are expected to record 48 trillion won earnings in the semiconductor business this year.
Shipments increased for most export markets, including emerging markets such as ASEAN and India. Exports to ASEAN countries totaled a record $9.1 billion, with more Korean companies setting up production facilities there and importing components.
Shipments to India also posted double-digit growth for nine months in a row. Exports to China, Korea's biggest trading partner, rose 23.4 percent.
Meanwhile, imports rose 21.7 percent to $41.4 billion, an increase for 11 consecutive months. Imports of semiconductor manufacturing equipment increased as companies expanded their investments in the chip industry. Imports of natural resources such as coal and zinc ore also pulled up the total.
The total trade balance was $13.8 billion surplus. Korea had an $840 million increase in its trade surplus against the U.S. in September despite increasing imports of agricultural products, LPG, chip manufacturing equipment, automobiles and planes.
The ministry pointed out that Korea's exports to the U.S. in September last year had been hit by a strike at automobile plants as well as a recall of the smartphone. The trade surplus against the U.S. between January and September contracted 23.9 percent from the previous year.
"The continuing recovery in the U.S., China and the E.U. as well as increasing manufacturing production and the booming IT industry will work favorably in global trade," the ministry noted.
Meanwhile, global protectionism and the U.S. Fed's moves to tighten monetary policy, plus fluctuating foreign exchange rates and fewer working days in October compared with the year before will work as risks.
Trade, Industry and Energy Minister Paik Un-gyu said that exports should not seek just quantitative growth.
"The ministry will continue efforts to innovate our exports structure so it can create jobs and lead to growth of SMEs," he said.
Experts have been pointing out that rising exports have not been contributing to the local economy as much as expected due to the transfer of production overseas.
