Seoul: South Korea's exports have experienced a notable decline in January, ending a streak of 15 consecutive months of growth. This downturn is attributed to a fewer number of business days due to the extended Lunar New Year holiday, as detailed in data released on Saturday.
According to Yonhap News Agency, outbound shipments decreased by 10.3 percent from the previous year, amounting to $49.1 billion in January. Meanwhile, imports saw a 6.4 percent decline to $51 billion, resulting in a trade deficit of $1.89 billion, marking the first deficit in 20 months.
The semiconductor sector, however, saw an increase, with exports climbing 8.1 percent to $10.1 billion, the second-highest for any January. This marked the ninth consecutive month that chip exports exceeded the $10 billion threshold. The Ministry of Trade, Industry and Energy attributed this performance to strong demand for premium products like high bandwidth memory chips, driven by global investment in data centers and artificial intelligence.
Exports of computers, including solid state drives, rose by 14.8 percent to $800 million, continuing their growth for the 13th month in a row. In contrast, automobile exports fell by 19.6 percent to $5 billion, impacted by the long holiday and decreased demand for diesel and electric vehicles.
Petroleum product shipments dropped 29.8 percent to $3.4 billion, affected by lower crude prices and a fire at a key production facility in December. Petrochemical product exports also declined by 12.8 percent to $3.5 billion, while ship exports decreased by 2.1 percent to $2.5 billion due to a focus on low-cost tankers. The secondary battery industry saw an 11.6 percent reduction to $1.2 billion.
Exports to China fell 14.1 percent to $9.2 billion, reflecting reduced demand for machinery, petroleum products, and displays. Shipments to the United States decreased by 9.4 percent to $9.3 billion, primarily due to reduced automobile and machinery exports. Exports to the Association of Southeast Asian Nations (ASEAN) edged down 2.1 percent to $8.6 billion, and those to the European Union contracted by 11.7 percent to $5 billion.
Industry Minister Ahn Duk-geun noted that the decrease in exports was temporary, linked to fewer business days from the Lunar New Year holiday. He emphasized that the country's export momentum remains strong, citing a 7.7 percent increase in daily average exports and growth in major sectors and markets. Ahn also expressed a commitment to monitoring shifts in U.S. trade policies and supporting exports amid economic uncertainties.