January Exports Down 10.3%... Negative for the First Time in 16 Months (Update)

Export and Import Trends for January 2025
Exports Decline for First Time in 16 Months Due to Fewer Working Days
Semiconductor and SSD Exports Continue Growth; Automobile and Petroleum Products See Sharp Drops
Exports to All Major Markets Fall, but Vietnam Shows 13 Consecutive Months of Growth
Trade Deficit Recorded as Imports Also Decrease
Government Plans Emergency Export Measures Amidst Challenging Global Conditions

Exports in January declined for the first time in 16 months. The government attributes this to a temporary slowdown due to a decrease in working days.

According to the Ministry of Trade, Industry and Energy on the 1st, exports last month recorded $49.12 billion, down 10.3%.

Cargo is stacked on a container ship docked at Busan Port. Photo by Jinhyung Kang aymsdream@

An official from the Ministry said, "Due to the long Lunar New Year holiday (January 25-30), the number of working days (20 days) decreased by 4 days compared to January last year (24 days), causing a temporary slowdown in exports. Considering the impact of working days, the average daily exports increased by 7.7% year-on-year to $2.46 billion, marking the second-highest level for January on record following 2022 ($2.52 billion)."

In January, among the 15 major export items, exports of two IT-related products, semiconductors and computer SSDs, increased. Semiconductor exports, Korea's largest export item, reached $10.1 billion (up 8.1%), achieving the second-best January performance on record, continuing a positive export trend for 15 consecutive months and maintaining exports above $10 billion for 9 consecutive months. Computer SSD exports also rose 14.8% to $800 million, marking 13 consecutive months of growth.

Although most items recorded negative export growth due to the decrease in working days in January, average daily exports increased in 10 items excluding automobiles and parts, general machinery, petroleum products, and home appliances.

In particular, automobile ($5.0 billion, -19.6%) and auto parts ($1.6 billion, -17.2%) exports were significantly affected by the reduction in working days, as the finished car and parts industries implemented additional holidays on January 31, compared to other items. However, automobile exports still recorded the second-best performance for January. Petroleum product exports fell sharply ($3.4 billion, -29.8%) due to a decline in international product prices compared to January last year and production disruptions caused by a fire at major companies' production facilities at the end of December.

Exports decreased across all nine major markets in January. Exports to China fell 14.1% to $9.2 billion due to the Lunar New Year holiday. Exports to the United States also declined 9.4% to $9.3 billion as exports of major items such as automobiles and general machinery decreased.

Exports to the three major export markets in ASEAN slightly decreased ($8.6 billion, -2.1%), but exports to Vietnam, which accounts for more than 50% of ASEAN exports, rose 4.0% to $4.4 billion, continuing a 13-month consecutive growth trend supported by strong semiconductor exports.

Imports last month totaled $51.0 billion, down 6.4% year-on-year. Energy imports decreased 14.0% to $11.36 billion, with crude oil (-5.5%), gas (-20.0%), and coal (-35.0%) all declining. However, imports excluding energy, which includes raw materials and parts such as semiconductors, were less affected by the Lunar New Year holiday and fell 3.9% to $39.6 billion.

The trade balance in January recorded a deficit of $1.89 billion as the decline in imports (-6.4%) was smaller than that of exports (-10.3%).

Minister of Trade, Industry and Energy Ahn Deok-geun said, "Considering the impact of working days, average daily exports increased by 7.7%, and most items and markets also recorded positive growth, so the momentum of Korean exports remains alive. Given the challenging conditions surrounding our exports recently, such as intensified global oversupply in major industries and declining memory prices, we will hold an export strategy meeting in February and announce a comprehensive government emergency export plan that includes immediate and effective measures across all export sectors such as finance, logistics, certification, and marketing to maintain the upward momentum of exports."