Monthly Trade Deficit Hits an All-time High
South Korea’s monthly trade deficit hit an all-time high of US$12.7 billion last month. Its semiconductor exports dropped 44.5 percent from a year ago to US$6 billion, the highest rate of decrease in 14 years or so.
Last month, South Korea’s petrochemical, general machinery and steel exports decreased 25 percent, 15.8 percent and 25.9 percent year on year, respectively. In addition, display, auto parts, biotech and healthcare, computer, textile, and consumer electronics exports dropped 36 percent, 16.2 percent, 33.5 percent, 63.8 percent, 27.6 percent and 19.9 percent, respectively. By contrast, automobile, petroleum product, wireless communications equipment, ship and rechargeable battery exports increased 21.9 percent, 12.2 percent, 17.9 percent, 86.3 percent and 9.9 percent, respectively.
Its exports to the United States and China plummeted as well. Specifically, those to China fell 31.4 percent year on year to US$9.17 billion and those to the United States fell 6.1 percent to US$8.05 billion. Those to the European Union and the Middle East edged up 0.2 percent and 4 percent, respectively. China and the United States are the two largest export destinations for South Korea.
The decrease in exports to China was led by sluggish semiconductor exports. China accounts for more than 40 percent of South Korea’s semiconductor export performance. Semiconductor exports from South Korea to China topped US$4 billion for the 16th consecutive month in September last year. However, it dropped 22 percent year on year to US$3.61 billion in October, 35.6 percent to US$3.24 billion in November, and 36.8 percent to US$3.23 billion in December.
Exports from South Korea to the ASEAN region decreased 19.8 percent year on year to US$8.26 billion in January this year. Those to Japan, Latin America, India and the CIS region decreased 12.7 percent, 25 percent, 0.7 percent and 17.6 percent, respectively.
That month, South Korea’s total exports were US$46.27 billion, down 16.6 percent from a year earlier, and imports were US$58.96 billion, down 2.6 percent. Crude oil, coal and gas imports, which account for more than 26 percent of South Korea’s total imports, added up to US$15.79 billion, approximately 160 percent of the latest 10-year January average.