S. Korea’s exports jumps 13.9% YoY in July

South Korea’s exports surged 13.9 per cent year-on-year in July, reaching $57.49 billion, marking the fastest growth in six months.

While this outpaced the previous month’s 5.1 per cent increase, it fell short of the 18.4 per cent growth anticipated by economists.

The positive performance was driven by a 50.4 per cent increase in semiconductor exports, extending a nine-month streak of growth.

Other IT products also contributed to the overall export gains. However, automobile exports declined by 9.1 per cent due to earlier summer vacation periods at major automakers.

Exports to the United States rose for the twelfth consecutive month, increasing by 9.3 per cent. Shipments to China jumped 14.9 per cent to a 21-month high of $11.4 billion.

“Last month was somewhat disappointing, even after taking base effects into account,” said Park Sang-hyun, chief economist at HI Investment Securities.

He emphasised the importance of China’s economic recovery, highlighting uncertainties about its sustained growth trajectory.

China’s manufacturing sector experienced a contraction in July, according to a private survey, raising concerns about the global production powerhouse’s economic performance in the second half of the year.

While acknowledging the strong export start in the second half of the year, Trade Minister Ahn Duk-geun reaffirmed the government’s goal of achieving record-high exports for the entire year.

Imports rose 10.5 per cent in July to $53.88 billion, marking the fastest increase since September 2022 but falling short of the expected 13.4 per cent growth.

As a result, the country’s trade surplus narrowed to $3.62 billion in July, compared to the previous month’s $7.99 billion.

Attribution: Reuters