S. Korea’s export growth slows amid global trade uncertainty

South Korea’s export growth slowed for the fourth consecutive month in November, hitting a 14-month low due to weaker demand from the US and China amid trade tensions, trade data showed on Sunday.

Exports in November increased by 1.4 per cent year-on-year to $56.35 billion, a significant decline from the 4.6 per cent growth recorded in October. This figure fell short of the 2.8 per cent increase projected by economists in a Reuters poll.

Shipments to the United States dipped by 5.1 per cent in November, marking the first decline since July 2023. Similarly, exports to China, South Korea’s largest trading partner, decreased by 0.6 per cent.

Semiconductor sales increased 30.8 per cent, marking the slowest growth in 11 months. On the other hand, car sales experienced a significant decline of 13.6 per cent, the largest drop since June 2020. This was attributed to strikes at major auto parts manufacturers and shipping delays caused by adverse weather conditions.

To counteract these challenges and bolster exports, the South Korean government has pledged to work closely with the private sector to maximise export revenue by the end of the year.

On the import side, the country witnessed a 2.4 per cent decline in November, reaching $50.74 billion. This contrasts with the 1.7 per cent growth seen in the previous month. As a result, South Korea recorded a trade surplus of $5.61 billion in November, exceeding the $3.15 billion surplus in October.

Attribution: Reuters

Subediting: M. S. Salama