Ministry of Trade, Industry and Energy Reports July Trade Trends
Semiconductor Exports Reach Record High for July
Exports to United States and ASEAN Continue to Grow
Automobile and Ship Exports Drive Overall Export Increase
Trade Surpl
Semiconductors, Korea's main export item, continued their strong performance in July, reaching an all-time high. Exports to the United States also increased by 1.4% year-on-year, driven by growth in IT products such as semiconductors, making it the third-largest export market after China and ASEAN.
According to the Ministry of Trade, Industry and Energy on August 1, exports in July rose 5.9% year-on-year to $60.82 billion. This marks the highest July export figure ever recorded, with export growth continuing for the second consecutive month following June.
Among the 15 major export items, three categories saw an increase in exports. Semiconductor exports, led by memory semiconductors ($9.47 billion, up 39.3%), benefited from rising fixed prices and sustained strong demand for high-value-added products such as high-bandwidth memory (HBM) and double data rate (DDR) 5. As a result, semiconductor exports reached a record high for July at $14.71 billion, up 31.6%.
Automobile exports also performed well in major markets outside the United States, including the European Union (EU), Commonwealth of Independent States (CIS), and Central and South America. Driven by increased shipments of hybrid and internal combustion engine vehicles, total automobile exports rose 8.8% to $5.83 billion, marking two consecutive months of growth.
Ship exports surged 107.6% to $2.24 billion, marking five consecutive months of growth, as exports of high-value-added vessels such as tankers and liquefied natural gas (LNG) carriers expanded. In contrast, exports of petroleum products ($4.21 billion, down 6.3%) and petrochemicals ($3.75 billion, down 10.1%) continued to decline due to persistent low oil prices and falling product prices amid global oversupply.
Last month, exports increased in six out of nine major regions. Exports to China, the largest export market in July, fell 3.0% to $11.05 billion due to a slowdown in key items such as petrochemicals and wireless communication devices. Exports to ASEAN rose 10.1% to $10.91 billion, driven by a 1.5-fold increase in semiconductor exports, the region's top export item.
Exports to the United States grew 1.4% to $10.33 billion, despite declines in steel and auto parts, thanks to strong performance in IT products such as semiconductors and wireless communication devices, as well as non-IT items like cosmetics and electrical equipment. The United States ranked as Korea's third-largest export market after China and ASEAN.
Exports to the EU increased 8.7% to $6.03 billion, marking five consecutive months of growth, as multiple major items such as automobiles, ships, and petroleum products showed gains. Additionally, exports to the CIS ($1.22 billion, up 21.5%) rose for the fifth consecutive month, while exports to Central and South America ($2.68 billion, up 4.4%) and India ($1.79 billion, up 10.7%) increased for the second consecutive month.
Imports in July rose 0.7% to $54.21 billion. While energy imports ($9.67 billion) declined by 11.3%, non-energy imports ($44.55 billion) increased by 3.7%.
Last month's trade balance recorded a surplus of $6.61 billion, up $2.99 billion year-on-year, as exports grew significantly more than imports. This is the largest July surplus since 2018 ($6.89 billion).
Minister of Trade, Industry and Energy Kim Jungkwan stated, "As a result of negotiations with the United States, tariffs have been set at levels equal to or lower than those of competing countries, eliminating uncertainties in the export environment and enabling our exporters to compete on equal or superior terms in the U.S. market." He added, "The government will actively support our exporters so that they can enhance their competitiveness and diversify markets in this challenging new trade environment."
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