Seoul: South Korea's exports fell by 10.3 percent year-on-year in January, marking the first trade deficit in 20 months. The decline was attributed to fewer business days during the extended Lunar New Year holiday, as reported by the Ministry of Trade, Industry and Energy.

According to Yonhap News Agency, the country recorded exports valued at $49.1 billion last month, while imports decreased by 6.4 percent year-on-year to $51 billion. This resulted in a trade deficit of $1.89 billion. Despite the overall decline, exports of semiconductors rose by 8.1 percent to reach $10.1 billion, making it the ninth consecutive month that chip exports surpassed the $10 billion mark. Exports of computers, including solid state drives, increased by 14.8 percent to $800 million, continuing a 13-month growth streak.

Conversely, the automobile sector experienced a 19.6 percent drop in exports, totaling $5 billion, primarily due to the extended holiday affecting production. Exports of petroleum and petrochemical products also declined by 29.8 percent to $3.4 billion, influenced by lower crude prices and a fire at a major production facility in late December.

By destination, exports to China decreased by 14.1 percent to $9.2 billion, and shipments to the United States fell by 9.4 percent to $9.3 billion. Exports to the Association of Southeast Asian Nations (ASEAN) slightly decreased by 2.1 percent to $8.6 billion.

Industry Minister Ahn Duk-geun noted that the slowdown in exports was temporary, pointing out that South Korea's daily average exports increased by 7.7 percent year-on-year. He emphasized the nation's export momentum in major sectors and markets and pledged support for exports in the face of economic uncertainties.