South Korea’s exports declined for the seventh consecutive month in April, primarily due to the global economic slowdown and decreased demand for semiconductors, the country’s Ministry of Trade, Industry and Energy reported. Outbound shipments fell by 14.2 per cent on-year, totaling $49.6 billion in April.
Semiconductor exports, South Korea’s primary export item, plunged 41 per cent on-year due to reduced demand and a drop in chip prices. According to Yonhap news agency, this decline can also be attributed to fewer working days and a high base effect from last year when April exports reached $57.8 billion, the largest figure for April.
“Exports have logged an on-year fall since October last year amid aggressive monetary tightening by major economies to curb inflation and an economic slowdown,” the ministry stated. Imports fell by 13.3 per cent on-year to $52.2 billion in April, resulting in a trade deficit of $2.6 billion for South Korea.
Semiconductor exports in April amounted to $6.38 billion, down from $10.78 billion in the same period last year. South Korea’s chip exports have been experiencing an on-year decline since August last year. Additionally, global sales of South Korean display items slid 29.3 per cent to $1.23 billion, and bio-health item exports decreased by 18.3 per cent to $1.03 billion in April.
Despite the overall decline in exports, some sectors showed growth. Car exports surged by 40.3 per cent on-year, marking a growth trend for the past 10 months in a row. Furthermore, exports of vessels and machinery increased by 59.2 per cent and 8.1 per cent on-year, respectively.
The South Korean government has pledged to support exports, a vital growth engine, by investing in advanced technologies and aiding exporters in entering new, promising markets. In the face of ongoing global economic challenges, maintaining a competitive edge in key industries will be crucial for South Korea’s sustained growth and stability.
