S. Korea’s August 1-20 exports in single-digit fall to suggest bottoming-out

South Korea’s exports fell 7 percent in the first 20 days of August from a year-ago period, unchanged from July to suggest bottoming-out in external demand that primarily drives Asia’s fourth largest economy.

According to data from the Korea Customs Service on Friday, Korea’s outbound shipments reached $23.1 billion in August 1-20, down 7 percent from the same period last year and little changed from the previous month.

Outbound shipments fell 7.1 percent on year in July, the first single-digit fall since March. Exports had fallen over 20 percent in April-May and over 10 percent in June.

The daily average exports in August fell 3.7 percent when reflecting changes in the number of working days. There were 0.5 less working day compared with a year-ago period.

The fall in the first 20-day exports in August was mainly due to weak shipments of petrochemical products and automobiles.

Exports of petrochemical products fell 39 percent in the August 1-20 period from a year-ago period, wireless communications devices 29.3 percent, and automobiles 10.1 percent.

Shipments of computer surrounding equipment jumped 99.4 percent and semiconductors 2.9 percent during the same period.

By country, exports to Japan fell 9.7 percent, Vietnam 6.4 percent, European Union 1.8 percent, and China 0.2 percent, while those to the United States gained 6.2 percent and Canada 25.4 percent.

Imports, meanwhile, reached $23.3 billion in the first 20 days of August, down 12.8 percent from last year. Korea’s trade deficit stood at $290 million in the August 1-20 period.

Imports of crude oil fell 37.8 percent, automobiles 11.2 percent, and precise machinery 5.6 percent, while those of semiconductor manufacturing equipment jumped 37.9 percent, semiconductors 14.7 percent, and machinery 4 percent.

Imports from the European Union fell 10.3 percent, the U.S. 2.5 percent, Japan 7.8 percent, and the Middle East 44.6 percent. Imports from China, meanwhile, gained 3.8 percent and Taiwan 11.5 percent.

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