SEOUL, March 1 (Yonhap) -- South Korea's exports saw a promising increase of 1 percent last month compared to the same period last year, reversing the trend from the previous month thanks to buoyant sales of computers and automobiles. Data released on Saturday by the Ministry of Trade, Industry and Energy revealed outbound shipments reached $52.6 billion, up from $52.1 billion one year prior.
This turnaround marks South Korea's exports back to growth just following a downturn observed across January which was affected by fewer business days. Imports also nudged up slightly, by 0.2 percent year-on-year, totaling $48.3 billion which brought about a trade surplus of $4.3 billion.
The rise was significantly supported by the automotive sector and computer technology, including solid-state drives (SSDs). Notably, automobile exports jumped by 17.8 percent year-on-year, amounting to $6.1 billion, which ended their previously painful three-month decline. Hybrid cars were standout performers, with sales rising 74.3 percent to reach $1.3 billion.
Computer exports also surged, climbing by 28.5 percent to $800 million, marking the 14th consecutive month of gains. Wireless communication equipment shipments surged by 42.3 percent, totaling $1.5 billion. Meanwhile, the bio-health sector reported impressive growth as bio-pharmaceutical sales soared by 45.5 percent, leading to overall bio-health exports reaching $1.4 billion.
Despite these positives, not all sectors shared the same fortune. The semiconductor market saw exports dip by 3 percent, totaling $9.6 billion, mainly due to plummeting memory chip prices. Similarly, petroleum product exports fell by 12.2 percent to $3.9 billion, hurt by declines in gasoline and diesel prices.
A geographical perspective on the figures reveals varied fortunes. Exports to China edged down by 1.4 percent to $9.5 billion, largely attributed to weaker chip sales. Conversely, exports to the United States demonstrated marginal growth, rising by 1 percent to $9.9 billion. The Association of Southeast Asian Nations (ASEAN) exhibited stronger recovery, with shipments surging by 12.6 percent to $9.6 billion. Innovative growth was also noted with exports to India jumping 18.6 percent year-on-year to reach $1.7 billion, matching exports to the Middle East which similarly grew by 19.6 percent to $1.7 billion.
Industry Minister Ahn Duk-geun commented, "Exports hit a bump in January but rebounded in February to log a trade surplus," emphasizing South Korea's resilience and promising export competitiveness amid looming global uncertainties largely fueled by protectionist trade policies from the U.S.
Coinciding with these encouraging trade reports, Minister Ahn is also actively engaging with U.S. officials to mitigate the impact of new tariffs proposed by the Trump administration. Recently, during meetings held at the U.S. Trade Representative’s office, Ahn urged the U.S. to reconsider its tariff strategies and presented South Korean businesses' apprehensions about the prospective trade barriers.
Addressing concerns, Ahn stated, "I have relayed South Korean businesses' concerns over tariff plans (to the US side) and requested exemptions," underscoring the importance of preserving advantageous trade relations. Discussions also extended to fostering greater bilateral cooperation across strategic industries, including shipbuilding and energy.
Ahn's visit marks the first ministerial-level discussions since Trump assumed the presidency, indicating the necessity for timely communications as both countries navigate the complex trade terrain. With the negotiations to establish working-level consultative bodies centered around tariff discussions, hopes remain high for fruitful outcomes.
Looking forward, Ahn emphasized, "South Korea will work to earn the best results from systematic and earnest negotiations with the US on new industry, trade and energy policies based on our experience..." as the country seeks to protect its economic interests during this significant yet risky trade climate. The culmination of these efforts from South Korea, alongside the recorded growth statistics, could prove pivotal as the country steers through current economic uncertainties.