Synopsis
In March, South Korea's exports rose by 3.1% year-on-year, reaching $58.3 billion, driven by demand for semiconductors and IT products. Imports also increased, resulting in a trade surplus of $4.98 billion. Various sectors saw notable growth, with a significant rise in semiconductor and other IT product shipments.Key Takeaways
- South Korea's exports increased by 3.1% in March.
- Semiconductor shipments surged 11.9% to $13.1 billion.
- Trade surplus recorded at $4.98 billion.
- Automobile exports grew by 1.2% to $6.2 billion.
- Exports to ASEAN exceeded those to China for the second month.
Seoul, April 1 (NationPress) South Korea's exports experienced a 3.1% rise year-on-year in March, marking the second consecutive month of growth, fueled by strong demand for semiconductors and various information technology (IT) products, as per data released on Tuesday.
Outbound shipments totaled US$58.3 billion last month, compared to $56.5 billion in the same month last year, according to statistics from the Ministry of Trade, Industry and Energy, as reported by Yonhap news agency.
Imports also saw a rise of 2.3% year-on-year to $53.3 billion, resulting in a trade surplus of $4.98 billion.
Shipments of semiconductors surged by 11.9% year-on-year to $13.1 billion in March, bouncing back from a 3% decline the previous month, driven by high demand for premium products, including high bandwidth memory and DDR5 memory chips.
Other IT product exports also showed significant growth, with computer shipments, including solid state drives, soaring by 33.1% to $1.2 billion, marking an impressive 15 consecutive months of increases. Wireless communications device shipments rose 13.8% to $1.3 billion, while display exports increased by 2.9% to $1.5 billion, ending a seven-month slump.
Automobile exports grew by 1.2% to $6.2 billion as increases in shipments of hybrid and internal combustion vehicles offset a decline in electric vehicle (EV) sales.
Shipments of ships surged 51.6% year-on-year to $3.2 billion, reaching the highest monthly total in 15 months, while bio-health product exports climbed 13.2% to $900 million.
On the downside, petroleum product shipments fell 28.1% to $3.3 billion due to reduced international oil prices and scheduled maintenance at major refineries. Steel exports also decreased by 10.6% year-on-year to $2.6 billion.
Regionally, exports to China dropped 4.1% to $10.1 billion last month, attributed to weak chip sales, while exports to the United States increased by 2.3% to $11.1 billion.
Exports to ASEAN nations rose 9.1% to $10.3 billion, surpassing sales to China for the second month in a row, bolstered by strong chip and display product sales.
Shipments to European Union (EU) countries grew by 9.8% to $6.3 billion, driven by demand for ships and bio-health products.
Exports to the Middle East rose 13.6% to $1.8 billion, marking the second consecutive month of growth, while exports to Japan increased by 2.2% to $2.2 billion.
Industry Minister Ahn Duk-geun stated, "The country observed strong exports and a trade surplus for the second month in a row in March, with all IT sectors showing export increases for the first time in eight months, despite growing trade uncertainties." He referenced the protectionist trade policies of the United States, including tariffs on steel and aluminum imports that began on March 12.
He assured that the government would employ all available resources to mitigate uncertainties for export sectors by engaging in discussions with the U.S. administration and quickly formulating support strategies for local industries.
The United States is set to impose 25 percent tariffs on all imported cars starting Thursday (U.S. time), along with reciprocal tariffs for its trading allies to be announced on Wednesday.
