South Korea exports grow in January, but trade deficit hits record high

[SEOUL] South Korea's exports grew in January for a 15th straight month, but the trade deficit in goods widened to a record high due to a sharp surge in energy demand.

Exports in January expanded 15.2 per cent from a year earlier to US$553.2 billion, trade ministry data showed on Tuesday (Feb 1), although the rate was softer than an 18.3 per cent rise in December and the slowest since February 2021. A Reuters' poll of 10 economists had expected 15.5 per cent growth.

A breakdown by items showed exports of semiconductors jumped 24.2 per cent year-on-year, while those of petrochemicals, oil and steel products also surged 40 per cent, 88.4 per cent and 50.1 per cent, respectively.

By destination, exports to China, South Korea's biggest trading partner, gained 13.1 per cent, and those to the US and EU rose 1.6 per cent and 13.3 per cent.

Imports, meanwhile, jumped 35.5 per cent in January to US$60.21 billion, with those of crude oil, gas and coal totalling US$15.95 billion.

That brought the trade deficit to a record high of US$4.89 billion.

South Korean financial markets will be closed until Thursday due to the Lunar New Year holiday. REUTERS