South Korea Records Trade Surplus Amid Recovering Exports

South Korea Records Trade Surplus Amid Recovering Exports by Emily Clark last updated on July 28, 2023

South Korea's Records Trade Surplus Amid Recovering Exports

The export downturn in South Korea slowed down during June, which is a promising sign for the country's economy. In addition, the exports of automotive & semiconductors also increased which has paved the way for recording a trade surplus this year.

South Korea's June Exports Recorded At $54 Billion

As per the statistics, the exports from the 4th largest economy of Asia dropped 6% in June when compared with a year earlier. Overall, the exports of South Korea during June were $54.24 only, which shows signs of recovery considering the drop in exports was 15.2% during May.

According to the relevant ministry, the trade balance improvement will likely stop in Jule & August. The reason behind this is attributed to seasonal factors. However, they are optimistic that the trade balance of South Korea will likely get back on track again after a few months.

The economists were expecting a 3% drop in exports, while the actual value turned out to be around 6%. But even that's an improvement considering the 15.2% decline in May.

The exports from the semiconductor industry also declined by 28%, which is one of the smallest declines of the last 8 months. On the other hand, the exports of automobiles increased by 58.3%, which supported the bottom line.

If we look at export data by county, the shipments from south Korea to China declined by 19%. Once again, this decline is one of the smallest in the last few months. Furthermore, the shipments to the USA only declined by 1.9%, while the exports to the EU jumped by 9.2%.

Imports which also contribute to the trade surplus narrowed by 11.7% during the same period. Over all, around $53.11 billion worth of exports were recorded which is a good sign for the country.

During June, South Korea's trade surplus was $1.13 billion which is a good sign considering the country faced deficit for 15 months in a row.