Ministry of Industry Reports September Export-Import Trends
September Exports Down 4.4% · Imports Down 16.5%
Trade Surplus $3.7 Billion... Largest in Last 2 Years
Last month, the export decline rate recorded 4.4%, marking the lowest since the export downturn began in October last year. The trade surplus reached $3.7 billion, the largest surplus in the past two years. The government evaluated this as securing momentum for a positive turnaround in exports.
According to the 'September 2023 Export-Import Trends' announced 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 downturn started in October last year, maintaining a single-digit decline for two consecutive months. The daily average export, considering working days, also showed the highest performance since October last year at $2.6 billion. Despite the decrease in export value, export volume increased by 0.3% compared to the previous year.
An official from the Ministry of Trade, Industry and Energy explained, "September exports recorded the lowest decline rate since October last year, and the trade balance showed a surplus for four consecutive months with the highest surplus in the past two years at $3.7 billion. Semiconductor exports achieved the best performance since October last year, exports of six items including automobiles increased, and the decline in exports of petroleum products and petrochemicals improved."
Exports of semiconductors, Korea's largest export item, decreased by 13.6%, the lowest decline rate this year. It recorded $9.9 billion, the highest performance since October last year, continuing the export recovery trend after the first quarter low. Including automobiles, which recorded export growth for 15 consecutive months (10%, the highest for September ever), exports of six major items such as general machinery (10%), ships (15%), steel (7%), displays (4%), and home appliances (8%) also increased compared to the previous year.
The export decline rates of petroleum products (-7%) and petrochemicals (-6%) also improved compared to August, which showed double-digit decreases, recording single-digit declines.
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 the improvement trend for six consecutive months since March this year. Exports to the United States (9%) and the European Union (EU, 7%) recorded the highest September performance ever for two consecutive months, supported by strong exports of automobiles and general machinery. Exports to ASEAN, which had recorded double-digit declines this year, improved to a single-digit decline (-8%) due to increased exports of major items such as general machinery, petrochemicals, and steel. In particular, Vietnam, accounting for 52% of ASEAN exports, maintained positive export growth (3%) for two consecutive months.
Imports in September decreased by 16.5% due to a decline in energy imports such as crude oil (-16%), gas (-63%), and coal (-37%) (-36% overall). Besides energy, imports of semiconductors and semiconductor equipment also showed a declining trend.
The trade balance in September recorded a surplus of $3.7 billion, the largest in the past two years, continuing a surplus trend for four consecutive months. The Ministry of Trade, Industry and Energy analyzed that the surplus trend was sustained due to the best performance of semiconductors and exports to China this year, along with the most favorable export decline rate (-4.4%) and a decrease in energy imports.
Visit Kyoo, Minister of Trade, Industry and Energy, said, "Despite still challenging external conditions such as the global high-interest rate trend, China's economic slowdown, and supply chain restructuring, our exports continue to improve. As the minister responsible for exports, I bear a heavy responsibility and will prioritize export recovery, concentrating all capabilities together with related ministries, support agencies, economic organizations, and industry associations to provide full support."
The Ministry of Trade, Industry and Energy plans to actively operate the 'Export Field Visit Team,' launched on the 26th of last month, to visit export sites nationwide, 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 an immediate effect on export growth, will be announced early this month.
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