Despite Fewer Working Days... February Exports Up 4.8% (Update)

February Export-Import Trends
Semiconductor Exports Up 66.7%
Trade Balance with China Turns Surplus After 17 Months

Exports in February increased by nearly 5%. Despite the shortage of working days due to the Lunar New Year holidays and a decrease in global import demand caused by the Chinese Spring Festival, the positive trend continued for the fifth consecutive month.

The Ministry of Trade, Industry and Energy announced on the 1st that February exports amounted to $52.41 billion, a 4.8% increase compared to the previous year.

Considering the number of working days, the average daily export value was $2.56 billion, a 12.5% increase compared to $2.27 billion in the same month last year.

In February, exports of 6 out of the 15 major export items increased. Semiconductor exports, Korea's largest export item, rose by 66.7% to $9.9 billion, showing the highest growth rate since October 2017 (69.6%) and maintaining a positive trend for four consecutive months.

Export containers are being loaded onto a ship at Busan North Port. Photo by Jinhyung Kang aymsdream@

Exports of displays (20.2%) and computer SSDs (18.4%) also showed double-digit growth rates, increasing for seven and two consecutive months, respectively. In the case of wireless communication devices, smartphone exports increased by 57.5%, but parts exports significantly decreased (-31.9%), resulting in an overall decline of 16.5%.

Additionally, general machinery (1.2%) increased exports for 11 consecutive months, ships (27.7%) for 7 months, and biohealth (9.3%) for 4 months. Automobile exports decreased by 7.8% due to the Lunar New Year holiday shutdowns and production line maintenance at some companies.

By region, exports increased in 5 out of the 9 major export markets. Exports to China, Korea's largest export destination, decreased by 2.4% year-on-year due to the Chinese Spring Festival, but the average daily export value ($470 million) increased by 4.8%, continuing the export improvement trend. The trade balance with China turned to a surplus ($240 million) for the first time in 17 months since September 2022.

Exports to the United States (9.0%) recorded a monthly record high of $9.8 billion in February, following January, maintaining an increasing trend for seven consecutive months. Exports to Japan (1.0%) and ASEAN (1.4%) increased for five consecutive months, and exports to Latin America (25.1%) rose for two consecutive months. Exports to the Commonwealth of Independent States (CIS, 21.4%) turned positive.

Imports in February amounted to $48.11 billion, a 13.1% decrease. Energy imports saw crude oil increase by 0.9%, but gas (-48.6%) and coal (-17.3%) imports decreased, resulting in a total decline of 21.2%.

The trade balance in February recorded a surplus of $4.29 billion, maintaining a surplus trend for nine consecutive months. Furthermore, the trade balance showed a significant year-on-year increase in February following January, continuing the improvement trend.

An Deok-geun, Minister of Trade, Industry and Energy, stated, "Despite difficult conditions such as the Lunar New Year holidays in February, exports increased in single digits, continuing the positive trend for five consecutive months. Considering the number of working days, the average daily export value increased in double digits, demonstrating the solid upward momentum of our exports." He added, "The government will fully support exports, which are showing a clear rebound among the three main drivers of our economy?consumption, investment, and exports?so that exports can play a leading role in driving our economic growth."