South Korea July exports fall at steepest pace in over three years

SOUTH Korea’s exports fell more than expected in July and at the steepest pace in more than three years, trade data showed on Tuesday (Aug 1).

Overseas sales by Asia’s fourth-largest economy fell 16.5 per cent year-on-year to US$50.33 billion in July, compared with a 6.0 per cent drop in June and a 14.5 per cent drop tipped in a Reuters survey of economists.

It was the biggest percentage drop since May 2020 and the 10th consecutive month exports fell in annual terms, the longest period since January 2020.

The July fall was due to a sluggish semiconductor industry, weaker oil prices and a high base, the trade ministry said.

The data showed exports of semiconductors dropped 34 per cent, worsening from a 28 per cent loss the previous month and marking the 12th straight month of decline for the sector. Petroleum product exports slid 25 per cent, while automobiles gained 15 per cent.

Imports fell 25.4 per cent to US$48.71 billion, also steeper than the previous month’s 11.7 per cent fall. Economists had expected a 24.6 per cent decline.

SEE ALSO

South Korea June factory output falls more than expected

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

That left South Korea’s trade surplus at US$1.63 billion for July, wider than US$1.13 billion in June. REUTERS