South Korea's exports extend recovery despite worsening pandemic

[SEOUL] South Korea's early trade data showed exports extending their recovery in November, as tech demand remained resilient amid record coronavirus cases in major economies.

Exports rose 11 per cent in the first 20 days of the month from a year earlier, the customs office reported Monday. Average daily shipments increased 7.6 per cent in the period, which had an extra half business day compared with last year.

South Korean exports are receiving a boost from an improving economy in China, its largest trading partner. Sales to the US and Europe also gained, even as the uncontrolled spread of the virus in those regions has led to renewed restrictions on activity.

The report also showed South Korean shipments continue to be supported from the pandemic-driven demand for tech products. Overall semiconductor shipments increased 22 per cent during the period, while sales of wireless communications devices jumped 36 per cent.

"The world may have learned a thing or two from the previous lockdown about how to live with the virus," said Park Chong-hoon, an economist at Standard Chartered Bank in Seoul. "Consumption may be staying alive by way of online shopping with demand for home-office supplies increasing ahead of another possible lockdown." November's rise in South Korea early exports, a bellwether for global demand, is the largest since the start of the pandemic. Still, the global trade recovery is expected to be patchy until vaccines become available.

South Korean exports to China rose 7.2 per cent between Nov 1-20 from a year earlier. Shipments to the US rose 15 per cent, while those to the European Union jumped 31 per cent. Sales to Japan dropped 7.2 per cent.

Shipments of cars rose 12 per cent, as sales of oil products dropped 48 per cent.

South Korea's overall imports rose 1.3 per cent in the first 20 days of November.

BLOOMBERG