S. Korea’s exports rise 11.4% in August

South Korea’s overseas sales rose 11.4 per cent year-on-year to $57.90 billion in August, down from the 13.9 per cent increase recorded in July. This was also below the 13.0 per cent growth forecast by economists in a Reuters survey.

South Korea’s exports grew for the 11th consecutive month in August, although the growth rate was lower than anticipated due to a slowdown in demand for computer chips and sluggish auto sales.

Semiconductor exports witnessed a slowdown to a five-month low. The automotive sector also faced challenges, with sales declining for the third consecutive month due to factors such as wage negotiations and temporary factory suspensions.

While exports to China experienced a slower growth rate, shipments to the United States accelerated. Notably, exports to the European Union surged 16.1 per cent to a record high of $6.4 billion, snapping a six-month streak of declines.

Despite the recent moderation, South Korea’s exports are on track to achieve a record-high performance for the year. Trade Minister Ahn Duk-geun expressed optimism about the growing trends observed across major export markets.

Imports also increased by 6.0 per cent in August, reaching $54.07 billion, following a significant jump of 10.5 per cent in July. This slightly exceeded the economists’ expectation of a 6.3 per cent rise.

As a result, the country recorded a trade surplus of $3.83 billion in August, expanding from the previous month’s $3.60 billion surplus.

Attribution: Reuters, South Korea’s Ministry of Tarde, Industry and Energy report

Subediting: M. S. Salama