South Korea’s exports posted double-digit growth in January, led by a recovery in semiconductor exports.
Korea’s exports totaled US$54.69 billion in January, while Korea’s imports totaled US$54.39 billion, according to the Korean Ministry of Trade, Industry and Energy (MOTIE).
Exports increased 18 percent year on year, marking the fourth consecutive month of growth. It was the first time in 20 months since May 2022 (21.4 percent) that the growth rate was in the double digits. Average daily exports, after the number of working days was taken into account, increased 5.7 percent year over year to US$2.28 billion. Export volume grew 14.7 percent, marking the fifth consecutive month of positive growth.
Exports of 13 of the 15 major export items climbed, with semiconductor exports, the largest export item of Korea, rising 56 percent year on year for the third consecutive month. Automobile exports ascended for the 19th consecutive month, posting a January high on record (US$6.2 billion).
Exports of general machinery (14.5 percent) expanded for 10 months, those of home appliances (+14.2 percent) for eight months, exports of displays (2.1 percent) and ships (76.0 percent) for 6 months, and exports of petrochemicals (4.0 percent) and bio-health items (3.6 percent) for three months in a row.
Exports of computers (37.2 percent) put a halt to an 18-month drop, while exports of steel (2.0 percent), petroleum products (11.8 percent), auto parts (10.8 percent), and textiles (8.5 percent) also turned to the positive side.
By region, exports increased in eight of the nine major export markets, excluding the CIS. Exports to China, Korea’s largest export market, reached US$10.7 billion, marking the first year over year increase in 20 months since May 2022. Exports to the United States grew 26.9 percent, marking the sixth consecutive month of growth. Exports to India (5.6 percent), the ASEAN (5.8 percent), and Japan (10.6 percent) grew for the fourth consecutive month. Exports to the EU (5.2 percent), Latin America (28.2 percent), and the Middle East (13.9 percent) also marked increases.
Imports fell 7.8 percent year on year in January. Energy imports grew 16.3 percent, driven by an increase in crude oil imports (6.0 percent) but finally contracted due to decreases in gas (41.9 percent) and coal (8.2 percent) imports. Non-energy imports also fell by 4.7 percent. The trade balance posted a surplus of US$300 million, marking the eighth consecutive month of a positive flow.
“We will fully support the gradual recovery of Korea’s exports to attain the challenging goal of record exports this year,” said Ahn Duk-geun, minister of trade, industry and energy. “We will quickly prepare a 2024 pan-ministerial export expansion strategy and continue to promote the highest trade finance of 355 trillion won, support Korean exporters with 1 trillion won for export marketing and dispatch strategic trade missions to 10 major countries.”