Roundup: S. Korea's export posts double-digit fall for 1st time in 10 years
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E-mail Xinhua, January 1, 2020
SEOUL, Jan. 1 (Xinhua) -- South Korea's export posted a double-digit fall for the first time in 10 years in 2019 owing to external uncertainties such as the global trade spat, cheaper crude oil and the downturn of business cycle in the global semiconductor industry, a government report showed Wednesday.
Export, which accounts for about half of the export-driven economy, amounted to 542.41 billion U.S. dollars in 2019, down 10.3 percent from the previous year, according to the Ministry of Trade, Industry and Energy.
It marked the first time since 2009 that the country's outbound shipment shrank in double figures. The export sank 13.9 percent in 2009 amid the negative effect from the global financial crisis.
Import retreated 6.0 percent to 503.23 billion dollars in 2019, sending the trade surplus to 39.18 billion dollars. The trade balance stayed in black for 11 straight years.
Last year's double-digit export fall was attributed to the global trade feud, lower prices for petrochemicals and oil products, caused by cheaper global crude oil, and the global chip industry's downturn leading to lower chip price.
Despite the external uncertainties, the country's international trade topped 1 trillion dollars for the third consecutive year through 2019.
In terms of volume, the outbound shipment grew 0.3 percent in 2019, after expanding 1.1 percent in 2018 and 2.7 percent in 2017 respectively.
Chip export tumbled 25.9 percent last year on lower product price, but in terms of volume, semiconductor shipment increased 7.9 percent in the year.
Export volume for petrochemicals gained 2 percent in 2019, with those for automobiles and auto parts expanding 5.1 percent and 1.1 percent each.
Export to the United States kept rising for three straight years, but shipment to China, South Korea's biggest trading partner, contracted 16.0 percent on lower chip price and weak demand for petrochemicals, general machinery and display panels.
Shipments to the Association of Southeast Asian Nations (ASEAN) and the European Union (EU) declined 5.0 percent and 8.4 percent each, with export to the Middle East countries sliding in double figures.
The trade ministry forecast that the country's export may rebound 3 percent this year, citing the expected recovery of the global economy and trade as well as the expected turnaround in the global chip industry.
In December 2019, the outbound shipment slipped 5.2 percent to 45.72 billion dollars compared with a year earlier, marking the export reduction for 13 straight months.
Import inched down 0.7 percent over the year to 43.70 billion dollars last month, sending the trade surplus to 2.02 billion dollars. The trade balance remained in black for 95 months through December.
Despite the continued decline, the export marked the first single-digit reduction in seven months, lifting expectation for an export rebound in the near future.
In terms of volume, export edged up 0.7 percent in December, after falling 2.7 percent in November and 2.4 percent in October each.
Semiconductor export dropped 17.7 percent amid a lower product price, but in terms of volume, the chip shipment continued to grow for six months in a row.
Export for ship and display panels plunged in double digits in December, but general machinery shipment recorded the first rebound in seven months.
Shipments for cars and auto parts rebounded in three months, while steel export posted the first turnaround in 11 months.
Export to China, which takes up about a quarter of South Korea's export, gained 3.3 percent in December, marking the first rebound in 14 months.
Shipment to the Middle East countries gained in double figures last month, but export to the European Union (EU) declined in double digits in the month.
Exports to the ASEAN and the United States slipped 9.8 percent and 0.4 percent respectively. Enditem
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