SEOUL, Feb 1 (NNN-YONHAP) – South Korea’s export kept falling for 14 straight months through Jan, on the lowered number of working days, caused by the Lunar New Year holiday, a government report showed today.
Export, which takes up about half of the export-driven economy, amounted to 43.35 billion U.S. dollars in Jan, down 6.1 percent from a year earlier, according to the Ministry of Trade, Industry and Energy.
The outbound shipment continued to slide for the 14th consecutive month, since Dec, 2018.
The decline was attributed to the reduced number of business days by 2.5 days in the month, on which the Lunar New Year holiday fell.
The daily average export gained 4.8 percent over the year to 2.02 billion dollars in Jan, marking the first rebound in 14 months. It raised expectations for the export recovery as early as in the first quarter of this year.
Sung Yun-mo, minister of trade, industry and energy, said, the country’s export bottomed out in Oct last year, noting that the export recovery momentum was built, given the daily average export’s rebound in 14 months.
Sung forecast that, if the current trend continues, the outbound shipment would turn around in Feb, pledging to make all-out efforts for the continued trend of export recovery.
Import slipped 5.3 percent from a year earlier to 42.73 billion dollars in Jan, sending the trade surplus to 0.62 billion dollars. The trade balance stayed in the black for 96 months in a row.
The global chip industry showed signs of recovery, after under-performing for the past year and striking the country’s overall export.
Chip export dipped 3.4 percent in Jan, from a year earlier, but it was the lowest fall in 14 months, since Dec, 2018. The daily average export of semiconductors grew 7.8 percent in the month, on higher price for memory chips.
In terms of volume, the export dived 10 percent in Jan from a year earlier, but the daily average export volume added 0.4 percent.
The export price advanced 4.4 percent in the month, marking the first increase in 14 months.
Amid the ongoing trade spat between Seoul and Tokyo, South Korea’s export to Japan dipped 6.4 percent in Jan from a year earlier, while the country’s import from Japan tumbled 21.9 percent.
South Korea’s deficit in trade with Japan diminished to 720 million dollars, the lowest since Jun, 2001. The ministry said, Japan’s export curbs had a limited impact on the South Korean economy.
Japan tightened control in July over its export to South Korea of three materials vital to produce memory chips and display panels, the mainstay of the South Korean export.
During the July-Dec period of last year, South Korea’s export to Japan shed 7.5 percent, while Japan’s export to South Korea contracted 14.8 percent compared with a year earlier.
Export of telecommunication devices, such as smartphone, diminished in double figures, amid stiffer competition and an expanded production in overseas factories.
The shipment of cars, auto parts, consumer electronics, petrochemicals, display panels and steel products all reduced in double digits last month.
