Due to Working Days, October Exports Down 3.6%... Daily Average $2.14 Billion 'Holding Up Well' (Comprehensive)

October Trade Performance Announced by Ministry of Industry on 1st
Total Exports $44.98 Billion...Daily Average Up 5.6%
Daily Average Exports Turn Positive After 9 Months
Semiconductor and Automobile Daily Exports Reach Annual High

[Asia Economy Reporter Kim Bo-kyung] Last month, South Korea's exports recorded $44.98 billion, a 3.6% decrease compared to the same month last year.

Due to the shortened working days during the Chuseok holiday, total exports turned negative after a month, but the daily average export value improved, surpassing $2.1 billion for the first time in over a year. In particular, the daily average export values of semiconductors and automobiles set new records for this year.

According to the 'October Export-Import Trends' released by the Ministry of Trade, Industry and Energy on the 1st, last month's exports amounted to $44.98 billion, down 3.6% from October last year.

This marks a decline just one month after a positive rebound in September, which was the first in seven months since the spread of COVID-19.

An official from the Ministry of Trade, Industry and Energy explained, "The export growth rate last month (-3.6%) is the second-best figure since COVID-19. Although total exports slightly decreased due to two fewer working days, daily average exports rebounded positively for the first time in nine months."

Considering the number of working days last month, the daily average export value recorded $2.14 billion, a 5.6% increase compared to the same month last year.

In the past two years, daily average exports have only recorded positive growth three times, including last month, November 2018 (3.6%), and January this year (4.2%).

This is the first time in 13 months that the daily average export value has entered the $2.1 billion range, and the growth rate (5.6%) is the highest in the past two years.

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy evaluated, "It is meaningful that the daily average export value, which had been slow to recover after COVID-19, exceeded $2.1 billion for the first time in over a year."

Daily Average Exports by Item and Country Show Improvement... Semiconductor and Automobile Performance Enhanced

Looking at exports by item, among the 15 major items, seven items increased: semiconductors (10.4%), automobiles (5.8%), displays (5.2%), home appliances (14.7%), biohealth (47.4%), computers (5.3%), and secondary batteries (6.8%).

Semiconductor exports recorded positive growth for four consecutive months and surpassed $8 billion for three consecutive months. Automobile exports increased for two consecutive months and exceeded $4 billion for the first time since November 2017.

The daily average export amounts for semiconductors and automobiles reached $413.3 million and $191 million respectively, setting new records for this year. In particular, automobile exports reached their largest scale in 70 months since recording $200 million in December 2014.

Biohealth exports surpassed $10 billion annually for the first time ever, driven by strong demand for diagnostic kits.

Displays recorded positive growth for the first time in 26 months, while petroleum products (-50.1%) and petrochemicals (-14.2%) showed negative growth for 22 and 23 consecutive months respectively, affected by low oil prices.

Other items such as general machinery (-10.6%), steel (-6.8%), automobile parts (-9.3%), ships (-22.0%), and wireless communication devices (-11.6%) also decreased compared to the same month last year.

By export destination, exports decreased to China (-5.7%), ASEAN (-5.8%), Japan (-18.6%), the Middle East (-19.2%), Latin America (-17.7%), and India (-6.1%). Meanwhile, exports increased to the United States (3.3%), the European Union (EU, 9.5%), and the CIS (1.0%).

The Ministry of Trade, Industry and Energy stated, "Exports to China showed a negative trend due to the eight-day holiday period in early October, but for the first time in 25 months, daily average exports recorded positive growth in the four major markets of China, the United States, the EU, and ASEAN."

On a daily average basis, six out of nine regions recorded positive growth.

Daily average exports by country increased in China (3.2%), the United States (13.1%), the EU (19.1%), ASEAN (3.2%), India (1.8%), and the CIS (10.7%), while decreasing in Japan (-10.8%), the Middle East (-11.5%), and Latin America (-9.9%).

Government Prepares 'Export Digital Transformation Measures'... "Pooling Export Support Capabilities"

Last month, imports recorded $39 billion, a 5.8% decrease compared to the same month last year. Following a 1.6% increase in September, imports decreased by a single-digit percentage last month, returning to pre-COVID-19 levels of change.

Looking at recent import growth rates, April recorded -15.9%, May -20.9%, June -11.2%, July -11.6%, and August -15.8%, all showing double-digit decreases.

The trade balance recorded a surplus of $5.98 billion, marking six consecutive months of surplus.

Minister Sung emphasized, "We must prepare for risks such as the resurgence of COVID-19 and US-China decoupling, and pool cross-government export support capabilities to sustain the recent positive export trend."

The government plans to hold an expanded trade strategy coordination meeting chaired by the Prime Minister this month to announce joint 'Export Digital Transformation Measures' with related ministries.

Minister Sung stated, "We will promote the digital and online transformation of the export system to innovate the trade structure. By fostering export SMEs, we will expand the base of trade and solidify our position in the global trade market."