- Registration date2023-03-02
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The Ministry of Trade, Industry and Energy announced on March 1 that Korea’s exports in February declined 7.5 percent year-on-year to USD 50.1 billion. Imports rose 3.6 percent to $55.4 billion. Trade balance stood at a deficit of $5.3 billion.
The exports drop is attributed to the continued slowdown in the global economy and semiconductor industry, as well as the high base effect from the all-time high export performance in February of last year.
Automobiles, car parts and general machinery achieved double-digit growth, while items like semiconductors, displays and steel fell.
Outbound shipments of automobiles reached a record-breaking $5.6 billion (up 47.1 percent), thanks to improved auto chip supply and expanded sales from new releases of high-value added eco-friendly and SUV models.
Demand for car parts (up 13.3 percent to $2.0 billion) was driven up by growing sales of domestic car models in North America, India and the ASEAN region.
Petroleum products (up 12.0 percent to $4.7 billion) recorded growth for the 24th consecutive month as air travel is gaining traction worldwide in the endemic phase.
Shipments of general machinery (up 13.0 percent to $4.5 billion) increased for the first time in six months, mainly to regions where investment in infrastructure and facilities is growing, including the U.S., EU and the Middle East.
Secondary batteries (up 25.1 percent to $0.9 billion) hit the highest for February monthly exports as global automakers’ EV projects and eco-friendly car production are picking up speed.
Semiconductor exports (down 42.5 percent to $6.0 billion) continue to suffer as DRAM, NAND and system chip prices slide further due to shrinking demand and inventory buildup. Chip prices are expected to keep falling for a while, but a possible rebound is forecast for the second half on the backs of new server central processing units (CPUs).
Home appliances (up 4.3 percent to $0.7 billion) managed to generate positive growth for the first time in nine months as demand is increasing for compact items in accordance with expanding overseas sales.
Display exports (down 40.9 percent to $1.1 billion) plunged in accordance with falling LCD unit prices and continued shift towards domestic production reduction.
Steel exports (down 9.8 percent to $3.0 billion) experienced a setback from lukewarm demand from overseas markets amid the current off-season across major industries and the high base effect caused by last year’s high steel prices.
Bio-health exports (down 32.1 percent to $1.1 billion) faltered despite sound growth of shipments of biosimilars and contract manufacturing organization (CMO) as demand for vaccines and test kits is rapidly diminishing as the endemic is settling in.
By region, exports to the U.S. (up 16.2 percent), EU (up 13.2 percent), Middle East (up 20.2 percent) and India (up 11.0 percent) advanced, while those to China (down 24.2 percent), ASEAN (down 16.1 percent), Japan (down 4.9 percent), and Latin America (down 19.1 percent) retreated.
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