July Exports Reach $55.4 Billion... Highest Since Trade Statistics Began in 1956
Semiconductors, Cars, Secondary Batteries, and Biohealth Lead Both Core and Emerging Industries
[Sejong=Asia Economy Reporter Kwon Haeyoung] In July this year, South Korea's export value reached $55.4 billion, the highest figure in 65 years since trade statistics began in 1956. Notably, exports have fully revived, maintaining a growth rate of over 20% for four consecutive months for the first time in 10 years. Both key industries such as semiconductors and automobiles, as well as new industries like secondary batteries and biohealth, performed well, driving export growth and improving the quality of exports.
The Ministry of Trade, Industry and Energy announced on the 1st that last month's export value was $55.44 billion, a 29.6% increase compared to the same month last year. Although the number of working days decreased by 0.5 days compared to the same month last year, the average daily export value rose by 32.2% to $2.26 billion, setting a record high for July. Imports increased by 38.2% to $53.67 billion during the same period, and the trade balance recorded a surplus of $1.76 billion, marking 15 consecutive months of surplus.
Last month's exports not only ranked first for July on record but also marked the highest monthly export value in 65 years since trade statistics were first compiled in 1956. Although South Korea's exports were sluggish last year due to the COVID-19 shock, they have been increasing for nine consecutive months since November. In particular, this is the first time in 10 years since October 2010 to January 2011 that exports have achieved a growth rate of over 20% for four consecutive months, indicating a full recovery of Korean exports.
Both key and new industries contributed evenly to driving export growth. Exports of the 15 major key items all increased, with 13 of them achieving double-digit growth rates. Semiconductor exports rose 39.6% to $11 billion, marking the highest July figure on record. Petrochemicals (59.5%), computers (26.4%), general machinery (18.4%), and automobiles (12.3%) also saw increased export values.
New growth items such as secondary batteries (31.3%), biohealth (27.2%), cosmetics (11.7%), and agricultural and marine products (3.7%) also recorded increased export values.
By region, exports to all nine major regions increased for four consecutive months. Exports to the United States, European Union (EU), and ASEAN rose by 32.1%, 43.9%, and 36.8%, respectively, achieving the highest July export records, while exports to China increased by 15.7%, ranking second highest for July exports on record.
This export boom is expected to continue into the second half of the year. Major domestic institutions, including the Bank of Korea, forecast annual export values of $600 billion and a trade volume of $1 trillion for this year.
An official from the Ministry of Trade, Industry and Energy stated, "The export growth trend is expected to continue in the second half of the year," adding, "The price increases for major items such as semiconductors, petrochemicals, steel, and displays are expected to persist."
Minister Moon Seungwook of the Ministry of Trade, Industry and Energy said, "As we overcome the COVID-19 crisis, it is a valuable achievement that both traditional key industries like semiconductors and automobiles and new industries such as biohealth and secondary batteries have grown evenly, strengthening the export portfolio," emphasizing, "Threats such as the spread of variant viruses, export-import logistics difficulties, parts supply disruptions, and rising raw material prices continue. We will spare no effort to support export companies so that the current positive momentum can be sustained and the record annual maximum export value and $1 trillion trade recovery can be achieved."
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