During the Long Lunar New Year Holiday...Exports Turn Negative for the First Time in 16 Months (Comprehensive)

January Export and Import Trends Announced by the Ministry of Trade, Industry and Energy
Exports in January Total $49.12 Billion, Down 10.3%
Average Daily Exports Rise by 7.7%

Due to the long Lunar New Year holiday resulting in fewer working days compared to last year, exports in January continued to decline. This marks the first time exports have recorded a negative growth in 16 months since September 2023.

According to the Ministry of Trade, Industry and Energy on the 1st, exports last month amounted to $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 stated, "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), temporarily slowing 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)," he said.

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%), ranking second highest for January 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 in January due to fewer working days, 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 finished car and parts industries implemented additional holidays on January 31. However, automobile exports still recorded the second-highest performance for January. Petroleum product exports decreased significantly ($3.4 billion, -29.8%) amid a drop 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 last year.

Exports decreased across all nine major markets in January. Exports to China fell 14.1% to $9.2 billion due to the impact of 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, increased 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 declines in crude oil (-5.5%), gas (-20.0%), and coal (-35.0%). However, imports excluding energy, which includes raw materials and parts such as semiconductors, were less affected by the Lunar New Year holiday, decreasing by 3.9% to $39.6 billion.

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

Anduk Geun, Minister of Industry and Energy. (Photo by archive)

Minister of Trade, Industry and Energy Ahn Deok-geun emphasized, "Considering the impact of working days, average daily exports increased by 7.7%, and most items and markets showed positive growth, indicating that Korea's export momentum remains alive. Amid increasing domestic and external uncertainties this year, we will focus all available resources as a public-private one team to support exports as a pillar of our economy," he said.

He added, "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. Since the new U.S. administration has been continuously announcing new trade and commerce policies, we will monitor U.S. policy trends in real time and work closely with the industry to carefully review response measures to minimize any negative impact on our export companies," he said.