Trade Deficit of $7.7 Billion from August 1-10... Concerns Over 5 Consecutive Months of Deficit (Comprehensive)

[Asia Economy Sejong=Reporter Dongwoo Lee] From the beginning of this year until the 10th of this month, South Korea's cumulative trade deficit reached $23 billion. This surpasses the previous record deficit of $20.6 billion set in 1996.

According to the Korea Customs Service on the 11th, the export value (provisional customs clearance basis) from the 1st to the 10th of this month was $15.688 billion, a 23.2% increase compared to the same period last year. The number of working days during this period was 8.5, one day more than the 7.5 days in the same period last year. The average daily export value increased by 8.7%.

By major item, export values increased compared to the same period last year for petroleum products (177.0%), passenger cars (191.9%), home appliances (104.3%), precision instruments (9.5%), and ships (89.3%). Conversely, semiconductors (-5.1%) and wireless communication devices (-17.7%) decreased.

By country, exports increased to the United States (17.5%), the European Union (66.2%), Vietnam (10.2%), and Singapore (169.1%), while exports to China (-2.8%) and Hong Kong (-44.4%) decreased.

During the same period, imports totaled $23.365 billion, a 34.1% increase compared to the same period last year. Due to ongoing supply chain disruptions, imports of major energy products such as crude oil (50.1%), gas (96.4%), and coal (162.5%) continued to rise. Imports of major products such as semiconductors (44.6%), passenger cars (71.7%), and wireless communication devices (21.6%) also increased.

By country, imports increased from China (29.2%), the United States (17.4%), Japan (10.2%), and Saudi Arabia (99.7%). Conversely, imports decreased from the European Union (-5.6%) and Russia (-36.4%).

The trade balance from the 1st to the 10th of this month recorded a deficit of $7.677 billion. This deficit is larger than the $4.685 billion deficit during the same period last year. The trade balance recorded deficits in January (-$4.93 billion), April (-$2.477 billion), May (-$1.614 billion), June (-$2.575 billion), and July (-$4.669 billion). This marks the first time since 2008 (June to September) that a trade deficit has been recorded for four consecutive months.

As of the 10th of this month, the cumulative trade deficit for this year stands at $22.93 billion. If the trade deficit continues until the end of this month, it will mark five consecutive months of deficits. A trade deficit lasting five months or more would be the first since December 2007 to April 2008.