Invest KOREA

According to Pulse by Maeil Business News Korea,

South Korean exports sustained 40 percent on-year growth for the third month in June, raising expectations for a record year after achieving of over $300 million for the first time in the first half.

According to data released by the Ministry of Trade, Industry and Energy on Thursday, the country’s outbound shipments totaled $54.8 billion in June, up 39.7 percent from a year earlier. The winning stream stretched into the eight month and fourth consecutive month of hitting $50 billion.

Sizzling exports held up on the back on the back of gains of 45.6 percent in May and 41.2 percent in April.

Due to the accelerated pickup, exports in the first half reached record $303.24 billion, rising by 11-year high of 24 percent.

Of 15 export items, 14 kept up a double-digit growth in June.

Semiconductor exports amounted to $11.1 billion, topping $10 billion for a second straight month and the highest for the month of June. Outbound shipments of economy-sensitive items – machinery and petrochemicals – jumped 21.5 percent and 68.5 percent, respectively, to monthly highs for June.

Korea’s exports of automobiles soared 62.5 percent on year and auto components 108.2 percent in June.

Shipments to all nine markets expanded. Exports to China increased 14.3 percent, United States 51.9 percent, European Union 65.3 percent, Association of Southeast Asian Nations 37.5 percent, Japan 39.6 percent, Central and South America 16.5 percent, India 100.2 percent, Middle East 21.5 percent, and Commonwealth of Independent States 24.6 percent.

The trade ministry said that it was the first time for Korea’s exports of 15 items in 9 regions to expand all at the same time since January 2011.

Imports rose 40.7 percent on year to $50.36 billion in June, leading to a 14th straight trade surplus of $4.4 billion.

Imports for the first half gained 24 percent to $285.1 billion to deliver a trade surplus of $18.13 billion by June.

Trade minister Moon Sung-wook attributed strong exports to competitive manufacturing sector. “Traditionally core industries solidified their positions in the world market while future high value-added products like system semiconductors and green vehicles are on expansion,” Moon said. “New growth items like bio and health and secondary batteries also showed record high exports in the first half of the year, brightening the prospect for Korea’s future exports.”

The government and state institutions project the country may achieve a new record in annual exports. The Korea Trade-Investment Promotion Agency (KOTRA) estimated exports of over $600 billion this year, up 19 percent from last year.

The Korea Institute for Industrial Economics and Trade forecast Korean exports to reach $610 billion in 2021 while Korea International Trade Association $601.7 billion.

The previous record was in 2018 when Korean exports totaled $604.9 billion amid semiconductor super-cycle.



By Lee Eun-joo

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