Exports from Korea Dropped for Four Consecutive Months

Deputy Prime Minister Choi Kyung-hwan said on May 8 that the recent slump in exports was due to not only declining oil prices but also a number of external variables. He said he would look closely into the structural factors affecting the international trade into and out of Korea.

Bank of Korea Governor Lee Ju-yeol also remarked five days earlier that he was concerned over the possibility of the export side hindering Korea from reaching 3.1 percent in annual economic growth this year. “During the first four months of this year, the amount of export fell month after month unlike the export volume,” he explained, adding, “Even the export volume is now showing negative signs.”

According to the Ministry of Trade, Industry and Energy, the amount of exports fell 0.9 percent between January 2014 and January 2015, and the year-on-year decline went up to 3.3 percent, 4.3 percent, and 8.1 percent in the following months. This is the first time that Korea recorded a decrease in exports for four months in a row since 2009.

Expert consensus is that Korea’s annual exports could show negative growth for the first time in three years if this pace continues. The Bank of Korea recently predicted the annual exports for this year being at US$562 billion, 1.9 percent less than a year ago.