Ministry of Trade, Industry and Energy

The Ministry of Trade, Industry and Energy announced on December 1 that Korean exports in November decreased 14.0 percent year-on-year to USD 51.9 billion. Imports rose 2.7 percent to $58.9 billion and the trade balance stood at a deficit of $7.0 billion.

Exports were hit by global economic slump, major countries’ interest rate hikes and the prolonged Russia-Ukraine war, which in turn are lowering imports around the world. Slowdown in exports growth is currently a common factor among countries that are heavily reliant on manufacturing sectors and energy imports.

In contrast, imports increased as a result of high energy prices and countries’ tendencies to make early fuel purchases to secure power for the winter season. Crude oil, gas and coal prices recorded year-on-year growth of 18.6 percent, 33.9 percent and 11.9 percent, respectively.

By item, automobiles grew in double digits for five consecutive months, reaching historic highs in exports this month. Strong demand for domestic SUV brands and eco-friendly cars, coupled with improved automobile chip supply conditions drove Korea’s car exports up 31.0 percent to $5.4 billion.

Petroleum products (up 26.0 percent to $4.9 billion) grew on the backs of rising demand for middle distillates due to the winter season and oil stockpile in European markets, achieving growth for 21 consecutive months.

Despite successive interest rate hikes, outbound shipments of car parts (up 0.9 percent to $1.9 billion) improved for the fifth consecutive month as production conditions turned more favorable and Korean SUVs and eco-friendly cars’ popularity maintained in U.S. and EU markets. Exports also rose across emerging markets like Indonesia, Mexico and Brazil where strategically localized models met growing demand.

Secondary batteries (up 0.5 percent to $0.7 billion) keeps growing, thanks to surging demand for EVs in advanced markets. The supply of energy storage system (ESS) products for North America’s power grid and climbing unit prices are also fueling the growth.

Semiconductors (down 29.8 percent to $8.5 billion) suffered from multiple factors, including the high base effect of previous year’s strong gains, sluggish demand for consumer IT devices (low- to mid-range smartphones) and such downstream industries, as well as falling DRAM and NAND prices.

Petrochemicals (down 26.5 percent to $3.6 billion) declined year-on-year as a result of falling unit prices (down 9.3 percent) from the strong dollar, oversupply of some items and China’s COVID lockdowns.

As OLED business transition is gaining traction, displays exports (down 15.6 percent to $1.8 billion) diminished due to multiple factors, including a reduction in domestic LCD production caused by the intensifying price competition.

With COVID now in the endemic phase, bio-health exports (down 27.3 percent to $1.0 billion) dropped in accordance with shrinking demand for vaccines and test kits, and the general fall in unit prices from heated competition.

Home appliances (down 25.0 percent to $0.6 billion) experienced a decline owing to sluggish demand despite the Qatar World Cup effect and Black Friday special prices.

By destination, exports to the U.S. (up 8.0 percent to $8.8 billion), GCC (up 4.5 percent to $1.5 billion) and EU (up 0.1 percent to $5.3 billion) advanced, whereas exports to China (down 25.5 percent to $11.4 billion), ASEAN (down 13.9 percent to $9.1 billion), Japan (down 17.8 percent to $2.3 billion), Latin America (down 19.1 percent to $1.8 billion) and India (down 5.9 percent to $1.4 billion) contracted.

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