Busan Main Customs Office Reports Trade Deficit in Busan for January

Raw Material Imports Decline for 5 Consecutive Months

[Asia Economy Yeongnam Reporting Headquarters Reporter Yoon Yoseop] Due to the impact of the novel coronavirus infection (COVID-19) and other factors, the trade balance in the Busan area recorded a deficit in January this year, and raw material imports showed a declining trend for five consecutive months.

According to the analysis of export-import trends in the Busan area by the Busan Main Customs Office last month, exports amounted to $960 million, down 19.4% compared to the same month last year. Imports decreased by 18.6% during the same period to $1.12 billion, resulting in a trade deficit of $158 million.

The Busan Main Customs Office analyzed that the significant decrease in exports in January was due to reduced exports to the U.S. automobile industry, sluggish domestic demand in China, and the Korean Lunar New Year holiday.

Due to COVID-19, exports of health masks to China recorded $1.8 million. On the other hand, imports from major countries except Japan and Taiwan all decreased.

Imports of raw materials such as minerals, light industrial raw materials, chemical products, and steel materials decreased by 21% compared to the same month last year. Raw material imports have been declining for five consecutive months.

Je Yeonggwang, head of the Busan Main Customs Office, stated, "To minimize the impact of the spread of COVID-19 on local export companies, we are operating a 24-hour customs clearance support system, running a customs clearance difficulty support center, and providing support such as deadline extensions, installment payments, and deferral or postponement of customs investigations."

Export and import increase and decrease chart for Busan area last year and this year. (Photo by Busan Regional Customs)