Exports from South Korea Seriously Affected by COVID-19

A total of 136 countries and regions across the world were prohibiting or restricting the entry of those from South Korea as of 9:00 a.m., March 15. Under the circumstances, South Korea’s exports are likely to take a direct hit.

For the first 10 days of this month, South Korea’s export value increased 21.9 percent from a year ago. However, the average daily export value fell 2.5 percent year on year during the same period. The number of business days was 7.5 from March 1 to 10 this year whereas that was six in the same period of the previous year.

The United States, Japan and China, which accounts for approximately 25 percent of South Korea’s total exports, are likely to undergo an economic contraction and South Korea’s trade conditions are deteriorating. The three countries accounted for 43.8 percent of South Korea’s total exports in 2019.

The South Korean government is planning to include large as well as smaller companies in its financial assistance program in order to better deal with the economic repercussions of COVID-19. Major airlines, travel agencies and consumer goods manufacturers are expected to be included in its upcoming plan.