The Financial Express

South Korea's export drops in double figures in first 20 days of Oct

| Updated: October 24, 2019 13:08:45

File Photo (Collected) File Photo (Collected)

South Korea's export dropped in double figures in the first 20 days of this month on the continued downturn of business cycle in the global semiconductor industry, customs office data showed Monday.

Export, which accounts for about half of the economy, amounted to 26.8 billion US dollars in the Oct. 1-20 period, down 19.5 per cent from a year earlier, according to Korea Customs Service.

One working day was reduced in the cited period. The daily average export slipped 13.5 per cent in the period, reports Xinhua.

Import contracted 20.1 per cent to $25.4 billion, sending the trade surplus to $1.4 billion.

The outbound shipment continued to fall for 10 straight months through September amid the global trade dispute and the global chip industry's downturn.

Chip export tumbled 28.8 per cent in the 20-day period, with those for oil products, automobiles and ships skidding 38.4 per cent, 6.5 per cent and 8.4 per cent each.

Shipment of telecommunications devices, such as smartphone, jumped 44.8 per cent, with home appliances export growing 11.7 per cent in the period.

Export to China, South Korea's biggest trading partner, diminished 20 per cent, with those to the United States and the European Union (EU) plunging 17.4 per cent and 36.6 per cent respectively.

Shipment to Japan dived 21.3 per cent in the 20-day period, after falling 6.6 per cent in July, 13.1 per cent in August, and 13.5 per cent in September.

Import from Japan also plunged 30.1 per cent in the 20-day period, after tumbling 16.6 per cent last month.

It came amid the ongoing trade spat between Seoul and Tokyo. Japan tightened control in July over its export to South Korea of three materials vital to produce memory chips and display panels, the mainstay of the South Korean export.

In August, Japan dropped South Korea off its whitelist of trusted trading partners that are given preferential export treatment. In response, Seoul removed Tokyo from its whitelist of trusted export partners.


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