South Korea January exports rise for fourth month, chip sales surge

SOUTH Korea’s exports rose for a fourth month in January, with chip sales growing by the most in six years in a boost to the export-reliant economy, trade data showed on Thursday (Feb 1).

Exports shipped by Asia’s fourth-largest economy rose 18 per cent year-on-year to US$54.7 billion in January, compared with a rise of 5 per cent in December and a gain of 17.8 per cent tipped in a Reuters poll of economists.

It was the biggest percentage increase since May 2022, boosted by a favourable comparison from a year ago when there were less working days due to the timing of the Lunar New Year holidays.

South Korea’s exports had swung to growth since October, after a year-long downturn, and are expected to improve further this year as a main driver of economic growth.

Exports of semiconductors jumped 56.2 per cent, the biggest since December 2017, extending gains to a third month and leading the upturn in exports.

By destination, China-bound shipments gained 16.1 per cent, snapping a 19-month streak of declines. Exports to the United States rose 26.9 per cent, extending gains to a sixth straight month, while those to the European Union climbed 5.2 per cent.

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Imports declined 7.8 per cent in January, after dropping 10.8 per cent in December, while economists had expected a fall of 7.6 per cent. It was the slowest since March 2023.

That took the preliminary trade balance for the month to a surplus of US$0.3 billion, after a surplus of US$4.5 billion in the previous month, which was the biggest in three years. REUTERS