Exports Drop in April with Semiconductor Faltering and Automobile, Display Slumping

Exports sank in April for the first time in 18 months, stoking concerns about slowing momemtum.  Cumulative exports from January to April are still the highest ever but the prospects are not rosy in light of faltering semiconductor exports and slumping automobile and display shipments.

The Ministry of Trade, Industry and Energy said on May 1 that in April, exports totaled US$50.06 billion, a drop of 1.5 percent from a year earlier, while imports hit US$43.45 billion, up 14.5 percent from a year ago. As a result, Korea recorded a trade balance surplus of US$6.61 billion, extending its surplus streak to 75 consecutive months.

The ministry attribtued the decline in exports to base effects. Korea chalked up record high exports (US$50.84 billion) in April 2017 thanks to large-scale offshore plant orders of US$5.44 billion and early customs clearance for the May holiday season.

Average daily exports also slid 3.7 percent year on year to US$2.18 billion. However, the average daily export volume excluding ship exports was US$2.1 billion, up 8% from the same month of the previous year.

Exports volume grew 9.5% in three months. However, the export unit price fell 10.1% year on year due to a drop in unit prices of ships, displays, and textiles despite a decline in unit prices of semiconductors and home appliances. Export volume measured in the Korean won dropped 7.2% year on year due to a strong Korean won.

April exports exceeded US$50 billion for the first time in two consecutive months and cumulative exports from January to April of this year reached a record high of US$195.5 billion, up 6.9 percent from a year earlier, the Ministry of Trade, Industry and Energy explained.