Ministry of Industry Reports September Export-Import Trends
September Exports Down 4.4%... Lowest Decline Rate Since October Last Year
Last month, a trade surplus of $3.7 billion was recorded, marking the largest surplus in the past two years. Although exports continued to decline, the rate of decrease was the lowest since October last year, when export values first began to fall.
According to the "September 2023 Export-Import Trends" released by the Ministry of Trade, Industry and Energy on the 1st, exports amounted to $54.66 billion, down 4.4% from the previous year.
In September, the export decline rate was the lowest since the shift to a downward trend in October last year, maintaining a single-digit decrease for two consecutive months. The average daily export value, adjusted for working days, reached $2.6 billion, the highest since October last year. Despite the decrease in export value, export volume increased by 0.3% compared to the previous year.
Semiconductor exports, Korea's largest export item, recorded $9.9 billion, the highest since October last year, continuing the recovery trend in exports after the first quarter low. Including automobiles (10%, the highest ever for September), which have seen 15 consecutive months of export growth, exports of six key items?general machinery (10%), ships (15%), steel (7%), displays (4%), and home appliances (8%)?also increased compared to the previous year.
Exports of petroleum products (-7%) and petrochemicals (-6%) also showed improvement, recording single-digit decreases compared to the double-digit declines seen in August.
Exports to China in September reached $11 billion, the highest this year, marking over $10 billion for two consecutive months. The trade deficit with China ($100 million) also improved, continuing a six-month improvement trend since March this year. Exports to the United States (9%) and the European Union (EU, 7%) recorded the highest September figures ever, supported by strong export performance in automobiles and general machinery, maintaining growth for two consecutive months. Exports to ASEAN, which had been declining in double digits this year, improved to a single-digit decrease (-8%) due to increased exports of key items such as general machinery, petrochemicals, and steel. Notably, Vietnam, which accounts for 52% of ASEAN exports, maintained positive export growth (3%) for two consecutive months.
Imports in September decreased by 16.5%, mainly due to reduced energy imports such as crude oil (-16%), gas (-63%), and coal (-37%), resulting in an overall 36% decline in energy imports. Imports of semiconductors and semiconductor equipment also showed a downward trend. The trade balance in September recorded a surplus of $3.7 billion, the largest in the past two years, continuing a four-month streak of trade surpluses.
Bang Moon-kyu, Minister of Trade, Industry and Energy, stated, "Despite challenging external conditions such as the global high-interest rate environment, China's economic slowdown, and supply chain restructuring, our exports continue to show improvement. As the minister responsible for exports, I bear a heavy responsibility and will prioritize export recovery, mobilizing all capabilities in cooperation with related ministries, support agencies, economic organizations, and industry associations to provide full support."
The Ministry plans to actively address export challenges by visiting export sites nationwide through the "Export Field Visit Team," launched on the 26th of last month, to directly listen to and resolve difficulties faced by Korean export companies. Additionally, a public-private joint export expansion task force will be fully activated, and a "Short-term Export Expansion Project," expected to have immediate export growth effects, will be announced early this month.
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