South Korea’s exports in February of this year increased by 4.8 percent compared to the previous year, continuing the trend of “export growth” for the fifth consecutive month. Particularly noteworthy is the semiconductor exports, which recorded the highest growth rate in six years and four months. Additionally, the trade balance with China returned to a surplus for the first time in 17 years.
According to the February export-import trends announced by the Ministry of Trade, Industry and Energy on March 1, the export value in February amounted to US$52.41 billion, marking a 4.8 percent increase compared to the same month last year.
Monthly exports have been on an upward trend for five consecutive months since turning positive in October of last year. Despite seasonal factors such as a shortage of domestic operating days due to the difference in Lunar New Year holidays between January last year and February this year, and a decrease in import demand due to the Chinese New Year holiday from Feb. 10 to 17, the upward trend has been maintained.
When considering the number of operating days, the daily average exports, at US$2.56 billion, showed a growth rate of 12.5 percent compared to the same month last year, which was at US$2.27 billion. Looking at specific products, six out of the top 15 major export items experienced growth.
South Korea’s largest export item, semiconductors, recorded US$9.9 billion in exports, representing a 66.7 percent increase compared to the same period last year. This is the highest growth rate recorded since October 2017, which stood at 69.6 percent.
Exports of displays saw a double-digit growth rate of 20.2 percent, while exports of computer solid-state drives (SSDs) also experienced a significant increase of 18.4 percent.
In the case of wireless communication devices, smartphone exports increased by 57.5 percent, while component exports decreased by 31.9 percent, resulting in an overall decrease of 16.5 percent.
General machinery recorded a consecutive export growth trend for 11 months, ship exports for 7 months, and biohealth exports for 4 months, with growth rates of 1.2 percent, 27.7 percent, and 9.3 percent, respectively.
Automobile exports saw a slight decrease of 7.8 percent due to the Lunar New Year holiday closure and some companies conducting maintenance on production lines.
By region, exports to China, South Korea’s largest export destination, decreased by 2.4 percent compared to the same month last year due to the impact of the Lunar New Year, but daily average exports increased to US$470 million. The trade balance with China recorded a surplus of US$240 million, showing the first surplus in 17 months since September 2022.
Following January, exports to the United States also achieved a monthly record high of US$9.8 billion in February. This marks the seventh consecutive month of growth. Exports to Japan, ASEAN, and Central and South America grew by 1.0 percent, 1.4 percent, and 25.1 percent, respectively.
Imports in February totaled US$48.11 billion, marking a decrease of 13.1 percent compared to the same period last year. Crude oil imports saw a slight increase of 0.9 percent, while imports of gas decreased by 48.6 percent and coal by 17.3 percent. The trade surplus amounted to US$4.29 billion, representing the ninth consecutive month of surplus.