Seoul: South Korea's exports are anticipated to improve in the second quarter of this year, even amidst increasing logistics costs from the Middle East conflict, driven by robust demand for semiconductors, a trade body reported Tuesday.

According to Yonhap News Agency, the Korea International Trade Association (KITA) revealed that its exports business survey index (ESBI) reached 106.6 for the April-June period this year. A reading above 100 indicates that optimists outnumber pessimists, while a reading below suggests the opposite. The survey encompassed feedback from approximately 2,000 exporting companies.

KITA forecasts improved export conditions for semiconductors, attributing it to strong demand for chips utilized in smartphones and artificial intelligence (AI). The association also expects an enhancement in export conditions for petroleum-related products. This is due to an anticipated rise in oil prices following the closure of the Hormuz Strait, which could potentially elevate export prices of these products.

However, the association predicts deteriorating export conditions for household appliances, citing tariff burdens and price competition from Chinese-made products as contributing factors. Additionally, over 20% of the export companies surveyed by the association identified rising raw material and logistics costs as the primary challenges for the upcoming quarter.