South Korea’s exports surged significantly at the beginning of February 2023, driven by strong demand for semiconductors and automobiles. According to the Korea Customs Service, during the first 20 days of February, the country’s outbound shipments reached $35.3 billion, reflecting a remarkable 16% increase compared to the same period last year.
This impressive growth is notable, especially considering the challenges faced earlier, when January had seen exports decline by 10.3% due to reduced working days stemming from the Lunar New Year celebrations. Average daily exports, surprisingly, decreased by 2.7% to $2.28 billion during this period. This is primarily due to the increase of 2.5 working days this February, providing 15.5 days for business activity, compared to just 13 days the previous year.
The export data highlights South Korea’s reliance on tech products, particularly semiconductors, which saw exports jump 22.1%. Similarly, the demand for passenger cars surged by 40.3%. On the flip side, exports of petroleum products suffered, contracting by 9.7%.
Analysis of specific trade partners reveals significant growth as well. Exports to the United States showed impressive enhancement, climbing by 16%, with shipments to China not far behind, increasing by 13.6%. The European Union received 8% more, and Vietnam experienced even greater growth, with exports up by 32.7%. Notably, shipments to Hong Kong faced declines, dropping by 5.7%.
Counts for imports tell another story. During the same 20-day period, imports rose by 7.7% to reach $34.5 billion. This resulted in South Korea recording a modest trade surplus of $800 million. Specific imports, such as semiconductors and machinery, also showed increases of 16.9% and 19.9%, respectively. Conversely, crude oil and gas imports decreased by 8.0% and 16.4%.
Remarkably, South Korea’s economy manages to maintain growth, as exports rebound from last month’s downturn. Industry analysts look forward to seeing how long this upward trend can sustain, especially amid global economic uncertainties.
With the initial data for February, it seems the Korean export sector is on track for recovery and growth. The performance of major sectors such as technology and automotive will be pivotal as the month progresses. This could potentially set the stage for stronger overall economic performance as 2023 continues.
Overall, these figures not only reflect domestic production capabilities but also underline South Korea’s important role in the global supply chain.