Korea's Exports to China Drop for 12 Consecutive Months

South Korean exports to China fell for the 12th month in June, recording the longest period of minus growth in the history.

Shipments to China declined to US$10.28 billion in June, down 9.4 % from a year earlier, according to the Korea International Trade Association (KITA).

The pace of declines in export to China has continued for 12 consecutive months since July last year when the exports to China dropped 6.5% year on year. It surpassed the record of 11 months made during the period between October in 2008 and August in 2009, when the global financial crisis hit the nation'

It is, however, a positive sign that the drop in June recorded a single digit figure, following May which showed a 9.1% decline compared to the same month of last year. The export to China had kept the decline trend of double digit figures for five straight months until April since it recorded minus 16.5% December last year

In the first six months of this year, exports to China fell to US$58.3 billion, a 14% decrease from a year ago. Semiconductor shipments to China declined 17.6 percent year on year to US$11.18 billion for the same period. The export of displays & sensors dropped by 23.8% to US$8.61 billion and that of synthetic resins declined 13.9% to US$2.86 billion.

Exports to the US also fell 3.9%to US$34.3 billion for the first six months.