"Semiconductor Boom" Drives 14.9% Export Growth Through the 20th... "Exports Expected to Rise for 8th Consecutive Month" (Update)

Korea Customs Service Releases Export and Import Status for January 1?20
Semiconductor Exports Surge by 70.2%
Ministry of Trade: "Focusing Efforts on Achieving 700 Billion Dollars in Exports for Second Consecutive Year"

As of the 20th of this month, exports have increased by nearly 15% compared to the same period last year. Robust performance in the semiconductor sector has driven overall export results. The government expects the export growth trend, which began in June of last year, to continue for eight consecutive months through this month.

According to the “Export and Import Status for January 1-20 (Provisional)” released by the Korea Customs Service on the 21st, export value reached 36.4 billion dollars, up 14.9% from the same period last year. This surpasses the previous record of 34.6 billion dollars set during January 1-20, 2022, marking a new all-time high.

Containers are piled up at Pyeongtaek Port, Gyeonggi Province. Photo by Kang Jin-hyung

The number of business days was 14.5, the same as the previous year. Considering this, the average daily export value also rose by 14.9% to 2.51 billion dollars.

The increase in exports was led by semiconductors. Compared to the same period last year, exports of semiconductors (70.2%), petroleum products (17.6%), and wireless communication devices (47.6%) all increased. In contrast, exports of passenger cars (-10.8%) and auto parts (-11.8%) declined, resulting in the share of semiconductor exports rising by 9.6 percentage points to 29.5%. By country, exports to China (30.2%), the United States (19.3%), and Vietnam (25.3%) increased, while exports to the European Union (EU, -14.8%) and Japan (-13.3%) decreased.

From the beginning of this month through the 20th, imports totaled 37 billion dollars, up 4.2% from the same period last year. Imports of semiconductors (13.1%) and semiconductor manufacturing equipment (42.3%) increased, while imports of crude oil (-10.7%), gas (-23.1%), and machinery (-0.7%) decreased. Imports from China (3.1%), the United States (5.3%), the EU (26.6%), and Australia (15.9%) increased, while those from Japan (-0.1%) and Saudi Arabia (-25.1%) decreased. Because imports exceeded exports, the trade balance for January 1-20 recorded a deficit of 600 million dollars.

The government has set this year’s export target at 700 billion dollars. The aim is to achieve 700 billion dollars in exports for the second consecutive year, following last year’s total of 709.4 billion dollars. The export growth trend is expected to continue for an eighth straight month. An official from the Ministry of Trade, Industry and Energy stated, “Given the export growth up to the 20th of this month, we expect overall exports in January to also record positive growth. While the strong performance in semiconductors is a positive factor, there are also ongoing trade risks such as the full-scale implementation of the EU Carbon Border Adjustment Mechanism (CBAM) and the introduction of new steel import regulations this year. Therefore, we will focus all available resources to achieve the 700 billion dollar export target for the second consecutive year.”