Despite Fewer Operating Days, February Exports Up 4.8%... Five Consecutive Months of Export Growth (Comprehensive)

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

Exports in February continued to grow despite a shortage of working days. Despite the reduced working days due to the Lunar New Year holidays and a decline in global import demand caused by the Chinese Spring Festival, exports showed a positive trend for the fifth consecutive month.

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

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

The number of working days this month was 1.5 days fewer than the same period last year. Considering this, the average daily export value was $2.56 billion, a 12.5% increase compared to February last year ($2.27 billion).

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

The Ministry cited the reasons for the increase in semiconductor exports as ▲ expanded demand in the IT upstream industry ▲ rise in memory (NAND) prices compared to the same month last year ▲ expansion of export volume growth. Semiconductor export volume also increased for three consecutive months since turning positive in December last year.

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

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 Lunar New Year holiday closures 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 average daily exports ($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 record high monthly export value of $9.8 billion for February, following January, maintaining a growth 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%) increased for two consecutive months. Exports to the Commonwealth of Independent States (CIS, 21.4%) turned positive.

Imports in February amounted to $48.11 billion, down 13.1%. 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.

Anduk Geun, Minister of Trade, Industry and Energy, is speaking at the '3rd Public-Private Joint Export Expansion Measures Meeting' held on the 28th of last month at the Korea Trade Insurance Corporation in Seoul.

Andukgeun, Minister of Trade, Industry and Energy, stated, "Our exports led Korea's typical 'low in the first half, high in the second half' growth pattern in the second half of last year by simultaneously achieving positive exports and a trade surplus in October last year. Especially in February, despite difficult conditions such as the Lunar New Year holidays, exports increased in single digits, maintaining a positive trend for five consecutive months. When considering working days, average daily exports increased in double digits, demonstrating a solid upward momentum for our exports."

Minister Ahn added, "The achievements shown by our exports, such as semiconductor exports increasing by over 60%, record-high exports to the U.S. in February, the trade surplus with China turning positive for the first time in 17 months, and maintaining a surplus trend for nine consecutive months, are positive signals for achieving this year's challenging export target of $700 billion. The government will also provide full support to ensure that exports, which are showing a clear rebound among the three main drivers of our economy?consumption, investment, and exports?lead economic growth at the forefront."