$52.6 Billion in Exports in February, Up 1.0% Year-on-Year
$4.3 Billion Trade Surplus Recorded
Exports recorded a slight increase last month, turning positive for the first time in a month. The trade balance was also recorded at a surplus of $4.3 billion. However, uncertainty remains due to the successive trade and commerce measures announced by the new U.S. administration.
The Ministry of Trade, Industry and Energy announced on the 1st that exports in February amounted to $52.6 billion, a 1.0% increase compared to the same period last year.
An official from the ministry said, "Exports last month ranked second highest ever for February, turning positive," adding, "Among the 15 major export items, exports increased in four items including two IT sectors?computer SSDs and wireless communication?as well as automobiles and biohealth."
Semiconductor exports amounted to $9.6 billion, a 3% decrease compared to $9.9 billion in the same month last year. The ministry analyzed that despite strong performance in high-value memory semiconductors such as HBM and DDR5, the significant drop in fixed prices of general-purpose memory semiconductors (DDR4 and NAND) affected the overall results. Computer SSD exports increased by 28.5% to $800 million, marking 14 consecutive months of growth, and wireless communication device exports rose by 42.3% to $1.5 billion, turning positive.
Automobile exports recorded $6.1 billion, a 17.8% increase, breaking the three-month negative trend since last November, driven by a more than 50% increase in hybrid vehicle exports compared to the same month last year ($1.3 billion, 74.3%). Biohealth exports increased by 16.1% to $1.4 billion, centered on biopharmaceutical exports ($600 million, 45.5%).
In the case of petroleum products, which account for 60% of total exports, international product prices for gasoline and diesel fell by more than 10% compared to the same month last year. Additionally, production volume decreased due to scheduled maintenance at major refineries, resulting in a 12.2% decrease to $3.9 billion compared to the same month last year.
In February, exports increased in four out of nine major markets. Exports to China recorded $9.5 billion (-1.4%), nearly flat compared to $9.6 billion in the same month last year, despite a slowdown in semiconductor exports, the largest export item, as exports of wireless communication devices and general machinery showed strong performance. Exports to the United States increased by 1.0% to $9.9 billion compared to the same month last year.
Exports to ASEAN, one of the three major export markets, rose by 12.6% to $9.6 billion, ranking second highest ever for February, as exports of both major items?semiconductors and petroleum products?increased.
Exports to India reached $1.7 billion, up 18.6%, marking the highest ever for February. Exports to the Middle East also turned positive after three months, recording $1.7 billion (19.6%).
Imports in February amounted to $48.3 billion, a 0.2% increase compared to the same period last year. Energy imports decreased by 21.5% to $9.4 billion due to declines in crude oil (-16.9%), gas (-26.7%), and coal (-32.8%) imports. Non-energy imports, including semiconductor equipment (+24.7%) and petroleum products (+4.4%), increased by 7.4% to $38.9 billion.
Last month, the trade balance achieved a surplus of $4.3 billion, an increase of $450 million compared to the same month last year. Notably, the February surplus exceeded the January deficit (-$1.9 billion), resulting in a trade surplus of $2.4 billion for the first two months of this year.
Minister of Trade, Industry and Energy Ahn Deok-geun said, "In February, exports rebounded after a slowdown in January, achieving both export growth and a trade surplus simultaneously," adding, "Despite the heightened external uncertainties surrounding our exports due to the new U.S. administration's successive trade and commerce measures, the export competitiveness of our industry is being maintained."
The government plans to fully support exports to continue driving South Korea's economic growth this year. To this end, the government will swiftly implement a 'Pan-Ministerial Emergency Export Measures' plan, which includes ▲ supplying a record-high $366 trillion in trade finance to secure liquidity for export companies ▲ proactively resolving difficulties for companies concerned about tariff damages ▲ diversifying markets with a focus on the Global South, thereby providing comprehensive support to Korean export companies without gaps.
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