Ministry of Trade, Industry and Energy: "Middle East Risks Have Limited Impact on Korea's Exports... April Export Growth Expected"

The government expects the impact of Iran's military attack on Israel on South Korea's exports to be limited. Despite the Middle East risks, the government forecasts that exports in April will record a positive growth.

The Ministry of Trade, Industry and Energy will hold the 4th Export Item Managers and the 5th Export Emergency Response Team meeting (attended by KOTRA, Korea Trade Insurance Corporation, Korea International Trade Association, etc.) on the 15th at the Government Complex Sejong, chaired by First Vice Minister Kang Kyung-sung, to review the export situation in April, including Iran's military attack on Israel.

Korean exports in the first quarter of this year recorded $163.7 billion, an 8.3% increase compared to the previous year. In April, based on data from the 1st to the 10th, exports of semiconductors, passenger cars, and petroleum products showed strong performance, and exports to the United States, China, and the European Union (EU) increased, resulting in an overall export growth of 21.6% compared to the same period last year.

Vice Minister Kang said, after discussing the export status of major items, "In April as well, the strong export trend of key items such as IT products including semiconductors, automobiles, and ships is expected to continue until the end of the month, maintaining a solid flow of positive exports for seven consecutive months."

He added, "Although exports to the Middle East (accounting for 3% of exports in 2023) are not large in proportion, the ripple effects on our exports through rising oil prices and logistics costs are significant, so close monitoring of the situation is necessary. So far, the shipment and delivery of our goods have proceeded without disruption, so the direct impact is limited. However, since this incident may increase the logistics burden on our companies caused by the Red Sea incident (November 2023), we will implement measures based on scenario planning, such as expanding export voucher logistics costs, providing additional exclusive shipping space support for small and medium-sized enterprises, and special trade finance support for affected companies."