S. Korea exports are expected to reach all-time high annual export despite COVID-19

Seoul [South Korea], November 2 (ANI/Global Economic): South Korea’s exports last month reached the second-largest monthly amount and a record high based on October exports. Following annual exports exceeded USD 500 billion last month, cumulative exports already exceeded last year’s total annual exports in October this year.
Korea’s exports have increased for 12 consecutive months and exceeded annual exports of $600 billion, making it likely to achieve a record high. It is analyzed because exports continued to grow evenly in major exporting items and regions. Despite the COVID-19, Korea’s exports rebounded rapidly and led the economic recovery and growth.
The Ministry of Trade, Industry and Energy announced on the 1st that exports amounted to $55.55 billion in October, up 24% year-on-year.
Monthly exports amount recorded second-largest ever following September ($55.83 billion), surpassing $50 billion in monthly exports for the eight consecutive months.
Korea’s exports have also increased for 12 consecutive months.
Korea’s exports have continued to increase from November (3.9%) last year to December (12.4%), January (11.4%) this year, February (9.5%), March (16.6%), April (41.1%), May (45.6%), June (39.7%), July (29.6%), August (34.9%), and September (16.7%).
The cumulative exports from January to October this year amounted to $523.2 billion and exceeded last year’s total annual exports ($512.5 billion), turning to surplus for the first time in three years.
“Korea’s increased for the 12th consecutive month, and high growth rate continued with double-digit for the 8th consecutive month,” said an official from the Ministry of Trade, industry and Energy. “When positive growth continued for more than a year, it set a new annual export record. This year is also expected to reach all-time high.”
The current highest annual export is $604.9 billion in 2018.
This year’s average daily exports amounted to $2.645 billion. Imports increased by 37.8% to $53.86 billion last month. During the same period, the trade balance continued surplus for 18 consecutive months at $1.69 billion.
The volume of trade exceeded $1 trillion in October, reaching $1 trillion in the shortest period. The global trade volume ranking also jumped one notch from the previous year’s ninth to eighth this year for the first time in 9 years.
By exporting item, 13 of Korea’s 15 major items showed a strong increase.
Major items such as semiconductors, general machinery, petrochemicals, and steels, and new growth items such as bio-health ranked first and second among exports in October.
Semiconductor exports rose 28.8% to $11.17 billion as demand for mobile devices increased during the peak season due to the launch of new smartphone models.
Semiconductor exports rose for 16 consecutive months, surpassing $10 billion for 6 consecutive months. As of October, the cumulative annual exports of semiconductor products exceeded $100 billion.
As export prices significantly increased due to rise in international oil prices, petrochemical and petroleum products exports rose 68.5% and 138.1%, respectively, to $4.99 billion and $3.92 billion. Petrochemical and petroleum products increased for 10 and 8 consecutive months, respectively.
As steel export prices rose due to rising coal prices needed for processed and demand for downstream industries increased, steel exports also rose 48.6% to $3.37 billion, up for 10 consecutive months.
Exports of IT items such as displays ($1.968 billion, 5.3%) and wireless communication ($1.562 billion, 15.5%) also continued to increase.
In addition, exports of computers ($1.44 billion, 52.7%), general machinery ($4.387 billion, 12.7%), precision chemical materials ($956 million, 43.9%), bio-health ($1.316 billion, 11%), raw-fibers ($1.143 billion, 22.1%), home appliances ($802 million, 13.9%) also showed double-digit growth. Exports of secondary battery cell also slightly increased 1.4% to $685 million.
On the other hand, exports of automobiles ($3.828 billion, -4.7%) and automotive components ($1.785 billion, -1.2%) slightly decreased due to production disruptions caused by automobile semiconductor shortage and base effects.
By region, exports to all nine major regions increased for seven consecutive months for the first time.
In particular, exports to the United States, the European Union, ASEAN, and India reached October’s all-time high.
Exports to China also increased for 12 consecutive months, up 24.9% to $14.39 billion. As demand for imported goods increased during the peak season such as National Day and Single’s day, exporting items such as semiconductors, petrochemicals, and displays showed strong exports performance. (ANI/Global Economic)