South Korea's Feb exports extend growth on strong chip, auto demand

[SEOUL] South Korea's exports expanded for a fourth straight month in February on continued growth in memory chip and car sales, underpinning the trade-led recovery in Asia's fourth-largest economy.

Exports jumped 9.5 per cent from a year earlier to US$44.81 billion in February, government data showed on Monday, slower than 11.4 per cent growth in January but matching the 9.5 per cent increase forecast by 12 economists in a Reuters survey.

Average daily exports, however, surged 26.4 per cent year-on-year, the sharpest in over three years, when eliminating the impact from a three-day drop in working days due to the nation's Lunar New Year holidays.

South Korea's monthly trade data, the first to be released among major exporting economies, is considered a bellwether for global trade.

Shipments of semiconductors, the country's top export, jumped 13.2 per cent year-on-year and for an eighth consecutive month, while those of cars, petrochemicals and bio-health products surged 47 per cent, 22.4 per cent and 62.5 per cent, respectively.

Of the nation's 15 major export items, shipments of 11 items increased last month.

By destination, those to China, the United States and the European Union soared 26.5 per cent, 7.9 per cent and 48.2 per cent each.

Meanwhile, data also showed imports grew 13.9 per cent to US$42.11 billion, beating forecasts for a 12.3 per cent jump.

The trade surplus shrank to US$2.71 billion from US$3.76 billion a month ago.

South Korea's financial markets are closed on Monday due to a public holiday and will resume trade on Tuesday.

REUTERS