Exports to China, U.S. and EU Post Positive Growth
South Korea put up a good fight in exports of flagship items such as semiconductors and automobiles despite the COVID-19 pandemic. The nation also fared well in exports of new growth engines such as bio-health, hydrogen and electric vehicles.
The Ministry of Trade, Industry and Energy said on Dec. 8 that semiconductor exports grew 3.5 percent from in the January-November period compared to the same period a year ago. Semiconductor exports reached US$89.7 billion during this period, taking up about 19.4 percent of Korea's total exports. The percentage is the highest since the 20.9 percent in 2018 when the memory semiconductor market was enjoying a super-cycle boom.
Computer exports surged 67.2 percent during the period based on a boom in the untact economy and Korean IT companies’ global competitiveness. Trade experts say that exports of both OLED panels (2.2 percent) and secondary batteries (0.6 percent) are expected to hit a record high this year. Automobile exports fell 13.9 percent due to shutdowns and lockdowns in major countries such as the United States and the European Union (EU). But they have been on the rise for the past three consecutive months.
The three items that the government fosters as next-generation growth engines have shattered their export records. System semiconductor exports jumped 15.4 percent to reach US$27.3 billion, an all-time high. They accounted for 5.9 percent of Korea's total exports. Bio-health exports (up 49 percent) touched US$12.2 billion, surpassing US$10 billion in annual exports for the first time. Shipments of bio-health products have been on the rise for 15 consecutive months.
Exports of electric and hydrogen vehicles grew 73 percent, achieving a record performance. They expanded their presence by taking up 10.7 percent of total automobiles exports. The number of export units of the two items rose 75 percent and 35 percent, respectively.
Cosmetics rose for the sixth straight month, breaking its all-time high in November.
From January to November 2020, the trade surplus reached US$39 billion, extending the surplus streak to 12 years. Due to the influence of COVID-19, trade volume has decreased somewhat. Exports fell 7.1 percent from January to November 2019 to US$461.4 billion, while imports fell 8.1 percent to US$422.5 billion.
Korean exports in 2020 are expected to reach US$500 billion for the fourth consecutive year. However, it is unlikely to break through the US$600 billion milestone which Korea reached in 2018, placing 7th in the world after the United States, Germany, China, Japan, Netherlands and France.
It is positive that Korea’s trade with China, the United States and the EU all posted positive growth in the third quarter. Exports to China grew 2.2 percent in the third quarter from -4.5 percent in the second quarter. Exports to the United States rose from -17.5 percent to 10.1 percent and those to the EU from -19.9 percent to 0.2 percent during the same period. However, uncertainties in exports still remain as the COVID-19 pandemic is staying rampant worldwide.