S. Korean exports decline 5.5% y/y in first 20 days of Oct., raising trade deficit concerns

10월 1∼20일 수출 5.5%↓, 2년만에 감소 우려…무역적자 50억불

South Korea's exports so far this month are down, meaning the country's on course for another monthly trade deficit, the seventh in a row.
That's because imports were up again, too.
The deficit so far this month is already about 5 billion dollars.
Lee Rae-hyun has more.

South Korea may be about to see the brakes being pulled on exports for the first time in two years.
Data released by the Korea Customs Service on Friday shows... that the country's exports in the first 20 days of October dropped 5-point-5 percent on-year... to a little over 32-point-4 billion U.S. dollars.
Specifically, exports of semiconductors dropped 12-point-8 percent on-year... largely affected by the global economic slowdown.
Should chip exports drop for this month as a whole... it would mark 3 consecutive months of decline.
Exports of steel products, wireless telecommunication devices, and ships also plunged in the same period.
Exports to China saw a drop of 16-point-3 percent on-year,... contributing to an overall export drop... as China is the biggest export market for South Korea.

"China is seeing slower economic growth now, as they have reported 0.4 percent of growth for the second quarter this year. This is discouraging consumption in the country, and eventually leading to a drop in exports to China. And with the global economic slowdown, the export crisis is expected to deepen next year."

Meanwhile, imports increased 1-point-9 percent on-year in the first 20 days of this month... to 37-point-3 billion dollars... largely driven by chips, gas, chip manufacturing equipment, and coal.

The trade deficit hit 4-point-9 billion dollars in the first 20 days of October... which is more than the same period the month before.
South Korea has already seen a trade deficit for six straight months for the first time in 25 years.
And if the country records a trade deficit for October as a whole, it could set the wheels in motion for further poor export performance down the road.
Lee Rae-hyun, Arirang News.

#export #trade #Arirang_News

2022-10-21, 17:00 (KST)