South Korea’s exports extended on-year gains to seven consecutive months in April, buoyed by robust chip demand, with shipments of automobiles also setting a fresh high, data showed Wednesday.
Outbound shipments increased 13.8 percent on-year to US$56.2 billion last month, according to the data compiled by the Ministry of Trade, Industry and Energy.
Imports gained 5.4 percent on-year to $54.7 billion last month, resulting in a trade surplus of $1.53 billion. South Korea has been maintaining a trade surplus for 11 consecutive months.
By sector, exports of chips soared 56.1 percent on-year to $9.96 billion, maintaining growth for six straight months. The ministry attributed the growth to the strong demand for premium memory chips for servers.
Outbound shipments of display products also increased 16.3 percent over the period to reach $1.43 billion, led by the robust demand for mobile devices in the United States and the European Union.
Car exports reached an all-time high as well, rising 10.3 percent on-ye
ar to $6.79 billion in April, surpassing the previous record of $6.53 billion posted in November 2023. The increase was led by eco-friendly models and electric vehicles.
Shipments of petroleum products rose 19 percent to $4.36 billion as export prices gained ground, tracking the recent hike in global crude prices.
By destination, exports to the United States set a fresh record at $11.4 billion in April, up 24.3 percent from a year earlier, on the back of the strong demand for chips and automobiles.
Shipments to the world’s top economy extended gains to nine straight months.
Exports to China also moved up 9.9 percent over the period to $10.5 billion, the data also showed, as the demand for chips offset losses from machinery, which was hurt by a slump in the property market.
Outbound shipments decreased 7.4 percent on-year in 2023 amid the sluggish performance of chips coupled with global economic uncertainties.
“April’s trade surplus came despite the high volatility in the crude price, foreign exchange r
ates and logistics costs in the face of the prolonged conflict between Israel and Iran, along with the Red Sea crisis,” Industry Minister Ahn Duk-geun said.
“Exports of IT products, such as chips, along with cars, machines and ships, are anticipated to remain strong throughout the second quarter,” Ahn added, noting that the government plans to roll out supportive measures to maintain the momentum.
Source: Yonhap News Agency