October Exports Grow 7.1% YoY
Despite a decrease of 4.5 days in the number of operation days, October exports rose 7.1% year on year to rise for 12 consecutive months. Imports also climbed 7.4% for the 12th consecutive month and the trade surplus hit 7.33 billion dollars, recording a trade surplus for the 69th consecutive month.
Exports of seven items among 13 main products were on the rise, and market diversification had continued since January with a surge in exports of high valueadded items in the main products and strong exports to the ASEAN. Exports of seven items such as semiconductors, computers, steel, and petrochemicals rose due to continuing robustness due to high specifications of IT equipment, a rise in export unit prices and customs clearance for high-value-added products.
Among the seven items that showed an increase in exports, three items showed increases of double digits. Exports of semiconductors chalked up double-digit growth for the thirteenth consecutive month and the second-highest figure. Petroleum products posted double-digit growth for three consecutive months. OLEDs (organic light emitting diodes) and MCPs (multi-chip packages) renewed their record-high exports following September, showing progress in adding high value to main products.
Semiconductors recorded a continuing rise in exports for the 13th consecutive month thanks to a peak season for semiconductors including the stabilization of prices of memories like DRAMs, and the launches of new smartphones.
Despite sluggish demand in the world PC market, computer exports rose for the seventh consecutive month, driven by demand for next-generation storage devices (SSDs) with high capacities and next-generation technologies.
Display exports grew for 12 consecutive months despite drops in prices and shipments caused a fall in LCD exports but exports of organic light emitting diodes (OLEDs) rose.
Exports of petrochemicals rose for the 13th consecutive month due to rising oil prices, a delay in restoring facilities hit by hurricane Harvey in the USA and a decline in international supply due to Chinese environmental regulations. Exports of petroleum products also increased for the 12th consecutive month as export prices spiked due to rising oil prices and export volume grew due to the base effects of regular maintenance implemented in the previous year.
Ship exports were on an upward spiral thanks to customs clearance for high-value-added offshore plants and 15 vessels including two liquefied natural gas (LNG) tankers.
On the other hand, general machinery exports went downhill due to a decrement in demand following the completion of overseas plant expansion by Korean companies in Vietnam and EU among others and early exports in late September due to Korea’s Chuseok holidays.
General machinery exports, mainly machine tool exports, dipped due to reduced facility investment in Latin America following natural disasters such as earthquakes in Mexico, which is a major importer of general machinery. Machinery exports were sluggish due to reduced orders for oil and gas projects from the Middle East and surging imports from Japan. A slowdown in the Indian construction industry cut machinery exports, mainly construction machinery exports, to India.
Car exports to Europe (new model launches), Australia (global automakers’ withdrawal from Australia) and ASEAN remained on the rise but overall car exports declined due to continued sluggish sales in North America and holidays in early October. Auto parts exports fell due to a decline in production days caused by the Chuseok holidays and sluggish sales of cars in overseas markets.
Exports of wireless communication equipment fell due to intensifying competition in high-end smartphones, the continued and expanded local procurement of parts, and a reduction in the number of days of operation.
“Despite a decline in the number of days of operation in October, I am highly encouraged by the fact that Korea continued sound export growth,” said Baek Woon-kyu, Minister of Trade, Industry and Energy. We expect Korea to recover $1 trillion in trade in three years since 2014. ”
“We will strengthen our export ecosystem by giving high added value to export items, promoting export item diversification and export items’ expansion into emerging markets by major industries, in addition to semiconductors, in order to improve the balance of export items’ contribution to exports by industries.”
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