According to data released by Korea Customs on Wednesday, the value of goods adjusted for differences in working days increased by 9.9% in the first 20 days of February compared to the same period last year.
The Zhitong Finance App learned that so far this month, South Korea's exports, driven by the growth of electronic products, have continued to grow, supporting the view that trade may regain vitality this year and help support economic growth. According to data released by Korea Customs on Wednesday, the value of goods adjusted for differences in working days increased by 9.9% in the first 20 days of February compared to the same period last year.
The schedule for the Lunar New Year holiday in February this year distorted the year-on-year comparison, leading to a 7.8% drop in overall export data and a 19.2% drop in overall imports. The trade deficit reached $1.2 billion.
Korea is one of the world's largest exporters, exporting a wide variety of products to consumers and supply chains around the world. As a result, the country's export trend has become a useful indicator for measuring the health of the global economy and the technology industry, and is known as the “canary” of the global economy.
Global demand for chips and electronics has remained stable in recent months, supporting the economic recovery of South Korea and other Asian countries. The price of memory chips has begun to rebound due to a recovery in demand for smartphones, artificial intelligence, and other technologies.
In the first 20 days of February, semiconductor exports increased by 39.1% compared to the same period last year, while exports in most other categories declined, mainly due to fewer working days. According to the data, automobile exports fell by 23.3%, and exports of steel products fell by 16.8%.
As a result, the share of semiconductors in South Korea's exports rose 5.8 percentage points to 17.2%. In addition, sales volume of semiconductor manufacturing equipment also increased 3.8% over the same period last year. Exports of household appliances also increased by 6.6%.
The Export-Import Bank of Korea anticipates a 9% year-on-year increase in total exports in the first quarter of this year. The bank notes that demand for semiconductors is driving exports.
However, the bank said in a report earlier this month that if geopolitical risks, including the Middle East conflict, escalate, they may begin to put pressure on exports. The report said that economic difficulties in Asia are also threatening South Korea's trade prospects.
The office said that in the first 20 days of this month, South Korea's exports to China were only 120 million US dollars more than exports to the US. Despite this, imports from China are still double those from the US, totaling around $6.6 billion.