South Korea’s exports grow for 14th month on record chip shipments

SEOUL:South Korea’s exports extended on-year gains to the 14th straight month in November, data showed on Sunday, on the back of the strong performance of chips.

Outbound shipments rose 1.4 percent from a year earlier to US$56.3 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy.

Imports shed 2.4 percent on-year to $50.7 billion, resulting in a trade surplus of $5.61 billion. South Korea has been maintaining a trade surplus for 18 consecutive months, reports Yonhap news agency.

By sector, exports of semiconductors shot up 30.8 percent to hit $12.5 billion, marking the highest amount for any November. It was also the fourth consecutive month the country has set a new monthly high for chip exports.

The ministry attributed the growth to premium models, including high-bandwidth memory chips.

Outbound shipments of automobiles, on the other hand, tumbled 13.6 percent on-year to $5.6 billion, due to production disruptions following major auto parts makers’ strike in November. The ministry added that weather conditions also hindered shipments of automobiles late last month.

Exports of petroleum and petrochemical products dipped 18.7 percent and 5.6 percent, respectively, due to falling crude prices.

The biohealth sector logged 19.6 percent on-year growth to $1.4 billion, maintaining growth for five straight months. Exports of ships spiked 70.8 percent on-year to $2.5 billion.

Exports of batteries decreased 26.3 percent to $658 million due to weaker global demand for electric vehicles.

By destination, exports to China, the top trading partner, edged down 0.6 percent to $11.28 billion, as weaker consumer sentiment in Asia’s top economy led to sluggish demand for mobile devices.

Exports to the United States fell 5.1 percent to $10.39 billion due to losses in the automobile and machinery sectors, although shipments of semiconductors gained ground on strong demand from the data centre and cloud computing industries.

Outbound shipments to Southeast Asian nations edged up 0.4 percent, supported by chip exports, and those to the European Union increased 0.9 percent, driven by higher demand for biohealth products and ships.