South Korea's exports decline slows in early Sept, helped by Huawei chip stockpiling

[SEOUL] Robust chip sales and improved demand from major trading partners have slowed the pace of decline in South Korean exports which edged just 0.2 per cent lower in the first 10 days of September.

That compares with a 23.7 per cent drop in the Aug 1-10 period.

Imports, however, dropped 7.6 per cent.

Korea Customs Service data showed outbound shipments of semiconductors, the nation's top export item, surged 43.2 per cent during Sept 1-10 from the the same period a year earlier, while car exports rose 8.4 per cent.

Analysts have attributed the jump in chip exports to stockpiling by Chinese telecom giant Huawei Technologies ahead of US sanctions which kick in on Sept 15, noting improved earnings prospects for South Korean chipmakers Samsung Electronics and SK Hynix.

Taiwan's exports have also jumped, climbing 8.3 per cent in August, as Huawei rushed to get in orders.

Greg Roh, head of research centre at Hyundai Motor Securities, noted the surge was only temporary and expects chip sales to start falling again from mid-September.

Overall exports to China, South Korea's biggest trading partner, jumped 9.7 per cent while those to the United States also rose 5.2 per cent.

REUTERS