Components and Materials Took up More than Half of South Korea’s Exports

The Ministry of Trade, Industry & Energy announced on October 18 that South Korea’s component and material exports and imports for the first three quarters of this year are estimated at US$185.7 billion and US$112.8 billion, respectively. The respective figures fell by 6.9% and 6.5% from a year ago and the trade surplus fell by US$6 billion, too.

“This year, the rates of decline in quarterly component and material exports, imports and trade surplus have continued to decrease and the material side showed a positive growth in the third quarter, led by rubber and plastic exports,” the ministry explained.

During the nine months, the component and material exports accounted for a record high of 51.1% of South Korea’s total exports. Those to China decreased by 13.2% as the Chinese government promoted the use of domestically produced components and materials and restricted processing trade. Those to the ASEAN region rose by 4.6% as South Korean companies’ direct investment in electronic components in the region continued to expand. Those to Japan increased 1.3%, led by transport machinery that benefitted from Japanese automakers’ policy for supply source diversification.

By item, electronic component exports fell 12.7% whereas those of computers and office equipment and those of rubber and plastic rose 9.5% and 2.7%, respectively.

The component and material imports took up more than one-third of the country’s total imports for the nine months. Those from China and Europe fell 10.3% and 14.8% while those from the United States and Vietnam increased 0.3% and 44.1%. The increase in the imports from the U.S. can be attributed to aircraft engines and components and that in the imports from Vietnam has to do with an increasing number of South Korean companies doing business there.