Rebound for 1st Time in 7 Months
South Korea’s exports rose 7.7 percent on year in September, rebounding for the first time in seven months. They rebounded 3.6 percent in February but fell for six straight months due to COVID-19. Whether the recovery in Korea’s exports will continue in the fourth quarter remains to be seen as uncertainties still linger, such as a resurge in COVID-19 cases and the deepening trade dispute between the U.S. and China remain.
According to the data released by the Ministry of Trade, Industry and Energy on Oct. 1, Korea’s exports totaled US$48.05 billion in September. Imports rose 1.1 percent to US$39.17 billion over the same period. The trade surplus reached US$8.88 billion, the largest in two years.
This was the first rebound in Korean exports since the beginning of the COVID-19 pandemic. Exports fell 1.7 percent in March, 25.6 percent in April, 23.8 percent in May, 10.9 percent in June, 7.1 percent in July and 10.2 percent in August.
The 7.7 percent export growth in September was the highest in 23 months since October 2018 (22.5 percent). The total exports (US$48.05 billion) and daily average exports (US$2.09 billion) in September were both the highest in 2020.
However, the average daily export growth rate slid by 4.0 percentage points compared to the previous year due to the base effect of 2019 (a daily average of US$2.18 billion, the highest in 2019).
Semiconductors (11.8 percent), general machinery (0.8 percent), and automobiles (23.2 percent) ranked first, second, and third among Korea's export items (35 percent in 2019). All of them recorded growth in 23 months. Semiconductors (US$9.54 billion) surpassed US$9 billion in exports for the first time in 2020. Compared to2019, they climbed 11.8 percent on year. Cars that decreased by more than 50 percent in May swelled by 23.2 percent (US$37.95 billion) in September and switched to a plus for the first time in six months. This was the first double-digit growth rate in 2020. Home appliances (30.2 percent) and secondary batteries (21.1 percent) posted the highest growth in 2020. Steel (1.8 percent) rebounded in nine months.
However, exports of five items such as ships, displays, and wireless communication devices fell. Exports in the petrochemical and petroleum product sectors fell 5.3 percent and 44.2 percent, respectively, as low oil prices continued.