Returning to Decrease
The Korea Customs Service announced on September 21 that South Korea’s exports for the first 20 days of this month totaled US$22.923 billion, down 17% from a year ago. Semiconductor exports decreased by 7.2% while steel product, auto parts and liquid crystal device exports dropped by 15.5%, 14% and 13.8%, respectively.
The decline in semiconductor exports has to do with the recall of the Samsung Galaxy Note 7. “Approximately 40% of the one million units of the Galaxy Note 7 Samsung Electronics recently exported to the United States were manufactured in the company’s facilities in Gumi City, North Gyeongsang Province,” said an industry source, adding, “Although the situation is getting better, the recall is sure to affect exports for this month and next month.”
Another negative factor is the receivership of Hanjin Shipping, which has resulted in significant difficulties in the logistics sector. These days, a large number of South Korean exporters are failing to make shipment and comply with their contracts due to the shortage of alternative ships.
During the period, South Korea’s exports to China and the United States fell by 16.8% and 22.1%, respectively. These countries are the two largest export destinations for South Korea, each representing 26% and 13.3% of South Korea’s total exports. The exports to the EU region plummeted by 25.9% during the same period.