February Semiconductor Exports Down 42.5%... Trade Balance Deficit for 12 Consecutive Months (Update)

From March last year to last month, South Korea's trade deficit continued for 12 consecutive months.

According to the Korea Customs Service on the 1st, last month's trade balance recorded a deficit of 5.3 billion dollars. During the same period, exports (provisional customs clearance basis) amounted to 50.1 billion dollars, a 7.5% decrease compared to the same period last year, while imports increased by 3.6% to 55.4 billion dollars.

Last month, the number of working days was 22, two days more than the same period last year (20 days). Considering the number of working days, the average daily export value was 2.28 billion dollars, a 15.9% decrease.

Exports have decreased for five consecutive months since October last year. The Ministry of Trade, Industry and Energy analyzed, "Exports decreased compared to the previous year due to the global economic slowdown and the semiconductor industry downturn," adding, "The high base effect from last February, when the highest-ever monthly performance was recorded, also partially influenced the export decline."

The cumulative annual export value this year was 96.4 billion dollars, down 12.1% compared to the same period last year, while imports increased by 0.2% to 114.3 billion dollars. As a result, the annual trade deficit this year recorded 17.956 billion dollars. The trade deficit has continued for 12 consecutive months from March last year to last month.

By item, exports increased for automobiles (47.1%), petroleum products (12.0%), and general machinery (13.0%), but exports of semiconductors, the largest export item, plunged 42.5% due to a sharp drop in product prices. By region, exports increased to the United States, the Middle East, and the European Union (EU), but exports decreased in China and the ASEAN region, which were heavily affected by the decline in semiconductor exports.

Last month's imports decreased by 3 billion dollars compared to the previous month, but imports increased by 19.7% year-on-year. Imports increased slightly (3.6%) year-on-year due to increased energy imports. Imports excluding energy slightly decreased (-1.5%) compared to the previous year.

The government stated, "We are seriously aware of the export decline and trade deficit situation, and plan to establish a strong export drive by implementing the whole-government export expansion strategy confirmed at the '4th Export Strategy Meeting' to overcome the complex crisis."

[Image source=Yonhap News]