March Exports Up 3.1%... Positive Growth for 6 Consecutive Months (Comprehensive)

Ministry of Trade, Industry and Energy March Export-Import Trends
Trade Surplus $4.3 Billion
Semiconductor Exports $11.7 Billion... Largest in 21 Months
"Export Growth and Trade Surplus Expected to Continue in Q2"

Exports increased by more than 3% last month, marking the sixth consecutive month of export growth since October last year. The government expects the positive export trend to continue in the second quarter of this year.

According to the Ministry of Trade, Industry and Energy on the 1st, March exports recorded $56.56 billion, up 3.1% from the previous year.

In March this year, the number of working days was 1.5 days fewer than in March last year. Considering this, the average daily export was $2.51 billion, an increase of 9.9%.

In March, exports of 7 out of the 15 major export items increased. In particular, IT items (semiconductors, displays, computers, wireless communication devices) all recorded positive growth for the first time in 24 months since March 2022, driving our exports.

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

Semiconductor exports, Korea's largest export item, increased by 35.7% to $11.7 billion, surpassing $11 billion and achieving the highest performance in 21 months since June 2022 ($12.3 billion), continuing a positive trend for five consecutive months. Exports of displays (16.2%) and computer solid-state drives (SSD, 24.5%) also increased for eight and three consecutive months, respectively. Wireless communication device exports (5.5%) reversed a three-month negative trend and turned positive.

Ship exports increased by 102.1%, maintaining a positive trend for eight consecutive months, and biohealth exports (10.0%) also increased for five consecutive months. Petroleum product exports (3.1%) turned positive after one month. Exports of automobiles (-5.0%) and general machinery (-10.0%), which are directly affected by the number of working days, decreased.

Exports increased in 3 out of 9 major export regions. Exports to China, Korea's largest export market, increased by 0.4%, marking positive growth in March following January. In particular, average daily exports considering working days ($470 million) increased by 7.1%, maintaining a positive trend for four consecutive months since December last year. Exports to the United States reached $10.9 billion (11.6%), recording double-digit growth and continuing an eight-month consecutive increase, setting a new record for March exports for the third consecutive month following January and February 2024. Exports to Central and South America (14.4%) also continued a positive trend this year, increasing for three consecutive months. Meanwhile, exports to Vietnam (4.4%, 3 months), an Asian production base for our IT companies, and Hong Kong (67.8%, 5 months), a logistics hub, also maintained an increasing trend due to strong exports of IT items such as semiconductors.

March imports amounted to $52.28 billion, down 12.3%. Energy imports decreased by 24.4% due to reductions in crude oil (-12.8%), gas (-37.4%), and coal (-40.5%) imports. The trade balance recorded a surplus of $4.28 billion, maintaining a surplus for 10 consecutive months.

Exports in the first quarter of this year increased by 8.3% to $163.7 billion. Among the 15 major export items, 10 items including semiconductors (50.7%), automobiles (2.7%), general machinery (0.9%), petroleum products (3.8%), and ships (64.3%) increased. Exports to 4 out of 9 major export regions, including the United States (15.4%) and China (4.4%), also increased. The trade balance recorded a surplus of $9 billion.

Minister of Trade, Industry and Energy Ahn Deok-geun said, "Despite the impact of the Lunar New Year holidays in February and the reduced number of working days in March, our exports continued to show positive growth, and the trade balance in the first quarter improved by more than $30 billion compared to the previous year, leading the growth of our economy." He added, "In the second quarter, we expect the upward export trend and surplus to continue as exports of IT items such as semiconductors and ships increase, along with the strong export performance of major items such as automobiles and general machinery that have continued since last year." He continued, "The government will accelerate support for export companies by ensuring the smooth implementation of customized support policies by item and market announced at the joint public-private export expansion strategy meeting on February 28, promptly executing the largest-ever trade finance of 360 trillion won and 1 trillion won in export marketing support, and immediately resolving on-site difficulties of export companies through export field support teams."