South Korea swings to trade surplus in June

Seoul, The Gulf Observer: South Korea reported a trade surplus in June for the first time in 16 months, but its outbound shipments fell for the ninth consecutive month due mainly to weak demand for semiconductors, the industry ministry said Saturday.

Outbound shipments fell 6 percent on-year to US$54.24 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy.

The decline came as exports of semiconductors, the country’s key export item, sank 28 percent on falling demand and a drop in chip prices.

But June saw the smallest on-year export decline so far this year, possibly indicating that the country’s exports may rebound in the second half of this year, reports Yonhap News Agency.

The nation’s outbound shipments sank 15.2 percent in May following a 14.4 percent decline the previous month.

Exports have marked an on-year drop since October last year amid aggressive monetary tightening by major economies to curb high inflation and an economic slowdown. It is also the first time since 2020 that exports have declined for nine months in a row.

Imports fell 11.7 percent on-year to $53.11 billion in June, as energy imports went down 27.3 percent on-year, the ministry said. South Korea depends on imports for most of its energy needs.

Accordingly, the country logged a trade surplus of $1.13 billion last month, ending a 15-month shortfall.