Ministry of Industry Announces 'May Export-Import Trends'
Trade Balance Turns Surplus After One Month
Semiconductors 7.1%, Biohealth 59.4%
"Will Rebound as Importing Countries' Economies Recover"
[Asia Economy Reporter Kim Bo-kyung] Due to the ongoing impact of the novel coronavirus infection (COVID-19), South Korea's exports in May decreased by 23.7% compared to the same month last year. This marks the second consecutive month of exports declining by over 20%, following the previous month. This is the first time such a decline has occurred since the 2009 financial crisis.
According to the "May Export-Import Trends" announced by the Ministry of Trade, Industry and Energy on the 1st, exports last month recorded $34.86 billion, down 23.7% from the same month last year. Imports were $34.42 billion, a decrease of 21.1%. As a result, the trade balance showed a surplus of $440 million after one month.
The number of working days last month was 1.5 days fewer than last year. Considering the number of working days, the average daily export was $1.621 billion, down 18.4% compared to the same month last year.
South Korea's exports have been declining for three consecutive months due to the shock of COVID-19. In March and April, the decreases were -1.4% and -25.1%, respectively. Although the decline slightly improved compared to the previous month in May, the exports still recorded a decrease of over 20% for two consecutive months, delivering a direct blow to second-quarter exports. The last time exports recorded a decline of over 20% for two consecutive months was in July (-22.1%) and August (-20.9%) 2009, during the aftermath of the financial crisis.
However, semiconductors, the largest export item, performed well despite COVID-19. Semiconductor exports turned positive for the first time in 18 months in both total exports (7.1%) and average daily exports (14.5%). Exports of biohealth products such as diagnostic kits, which benefited from COVID-19, also showed strong performance with a 59.4% increase, as did computers with an 82.7% increase.
An official from the Ministry of Trade, Industry and Energy stated, "The recent export slump is not due to structural problems such as a weakening of South Korea's competitiveness," and added, "We expect a rebound when the economies of major importing countries recover."
He continued, "The scale of exports to China has returned to pre-COVID-19 levels," and added, "It is expected that other countries such as the United States and the European Union (EU) will also recover to normal levels once the COVID-19 situation settles."
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