Automobiles and chips drive Korea's stellar exports

The Korea Times

The Korea Times

Business

Wed, November 29, 2023 | 20:32

Manufacturing

Automobiles and chips drive Korea's stellar exports

Posted : 2021-08-01 16:37

Updated : 2021-08-01 16:39

Containers are on standby to be exported at Busan Harbor. Yonhap

Country's external shipments reach highest volumes in July since 1956

By Kim Hyun-bin

Korea's exports surged 29.6 percent year-on-year to $55.4 billion in July, backed by a global economic recovery, according to data released by the Ministry of Trade, Industry and Energy on Sunday.

Korea's exports were driven by record-high automobile and chip exports in terms of volume.

"Last month, we recorded the highest export rate for the first half of the year. In July, we have recorded the highest export rate for July, since the country started to compile trade data in 1956," the country's Minister of Trade, Industry and Energy Moon Sung-wook said, "The faster-than-expected global economic recovery has provided strength to the country's export capabilities."

Korea's outbound shipments during the first seven months of this year reached $358.7 billion, also a record high.

Imports climbed 38.2 percent to $53.6 billion to result in a trade surplus of $1.76 billion, continuing 15-consecutive months of trade surplus for the country.

Overseas chip sales rose 39.6 percent to $11 billion on growing demand from data centers.
Automobile exports also rose 26.4 percent year-on-year in July to $4.1 billion, backed by easing automotive chip shortages, as well as higher sales of high-end models, including in sport utility vehicles and electric cars.

The country's petrochemical companies also saw a 60-percent increase in exports to $4.7 billion, as the pandemic boosted demand for hygiene products and packaging materials around the world.

Secondary battery exports also surged 30 percent year-on-year to $790 million, while bio-health product shipments grew 27.2 percent, as the Delta variant of the COVID-19 virus raised demand for test kits.

By region, outbound shipment to the U.S. jumped 32 percent, as new infrastructure projects led to more demand for Korean machinery, while shipments of automotive parts gained traction amid a recovery in major assembly lines. Exports to China also rose 15.7 percent due to a rise in demand for chips, petrochemical products and displays, as Asia's largest economy benefited from stronger economic indicators.

Exports to the European Union (EU) shot up 44 percent year-on-year in July, after many member countries started to ease virus measures.

The ministry believes Korea's export volume will continue to grow for the time being, due to the continuing recovery of global trade, but added that several factors could continue to threaten a swift improvement.

"The spread of the Delta variant, supply chain issues, as well as a rise in raw material prices, continue to be threats," the trade minister said.

hyunbin@koreatimes.co.kr