Continued Export Growth for 3 Consecutive Months Due to Semiconductor Boom... Government Announces "2 Trillion Export Package Preferential Guarantee"

Export up 13% from 1st to 20th, Trade Surplus $1.6 Billion
Semiconductors up 19.2%, Cars up 27.7%

Semiconductor exports have been strong, and exports have continued to increase through the 20th of this month. The government plans to make every effort to sustain the export growth trend, including establishing a preferential export guarantee package worth 2 trillion won.

According to the Korea Customs Service on the 24th, export value from the 1st to the 20th of this month reached $37.9 billion, an increase of 13.0% ($4.35 billion). If this trend continues and December records a positive monthly figure overall, it will mark three consecutive months of export growth since October this year.

The export growth is being driven by passenger cars and semiconductors. Semiconductors increased by 19.2%, passenger cars by 27.7%, and petroleum products by 10.4%. The share of semiconductor exports rose by 0.9 percentage points to 17.6%. Among the top 10 export items, exports increased in six items except for four: steel products (-2.3%), automobile parts (-5.5%), precision instruments (-0.5%), and computer peripherals (-9.5%). By country, exports increased to the United States (30.2%), Vietnam (13.8%), Japan (15.8%), and Hong Kong (133.0%), while exports to China (-0.4%) and the European Union (EU, -16.8%) decreased.

Cargo containers are stacked at Pyeongtaek Port as seen from the air. [Aerial shooting cooperation=Seoul Metropolitan Police Agency Aviation Unit, Pilots: Lieutenant Shin Seungho - Lieutenant Park Jihwan, Crew: Lieutenant Park Sangjin] Photo by Kang Jinhyung aymsdream@

An official from the Ministry of Trade, Industry and Energy said, "It is encouraging that not only semiconductors and automobiles but most items are showing positive growth trends," adding, "Based on export performance through the 20th of this month, the export value in the second half of the year is approaching that of the first half, and it is expected that by the end of the year, not only the trade balance but also exports will realize a 'low in the first half, high in the second half' pattern."

Imports through the 20th of this month amounted to $36.3 billion, a decrease of 9.2% ($3.69 billion) compared to the same period last year. Semiconductors (0.6%), machinery (1.1%), and precision instruments (2.5%) increased, while crude oil (-5.2%) and gas (-41.8%) decreased. Energy imports such as crude oil, gas, and coal fell by 22.1%. Imports from major countries increased from Vietnam (14.3%) and Malaysia (10.7%), while imports from China (-4.5%), the United States (-4.5%), and the EU (-10.1%) decreased.

The trade balance recorded a surplus of $1.6 billion. Including this, the cumulative trade deficit was $12.834 billion, a reduction of $36.592 billion compared to the same period last year (-$49.426 billion).

The government has decided to establish a preferential export package guarantee worth 2 trillion won to maintain the upward export trend. On the 21st, the president of the Korea Trade Insurance Corporation and the heads of the five major commercial banks (Kookmin, Hana, Shinhan, Woori, Nonghyup) signed a business agreement to resolve financial difficulties, which are the top priority for small and medium-sized export companies. This is the first case where all five major commercial banks contribute to the trade insurance fund. Under this agreement, the banks will contribute about 120 billion won to the trade insurance fund, and the Korea Trade Insurance Corporation will actively support small and medium-sized export companies through a new preferential export package product worth 2 trillion won based on this fund.