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Roundup: S. Korea's May exports fall at slowest rate in 2016

Xinhua, June 1, 2016 Adjust font size:

South Korea's exports in May fell at the slowest rate this year though the outbound shipments kept the longest monthly decline for 17 months, a government report showed on Wednesday.

Exports, which account for about half of the export-driven economy, shed 6.0 percent from a year earlier to 39.8 billion U.S. dollars in May, according to the Ministry of Trade, Industry and Energy.

The exports maintained a downward trend for 17 straight months, but it was the lowest decline since November last year. The country's exports posted a double-digit reduction this year except for March when the shipments contracted 8.2 percent.

The slower export fall boosted expectations that the country's main growth engine could rebound in the near future.

Daily average exports reached 1.85 billion dollars in May, marking the highest in 2016. The daily exports continued to increase from 1.62 billion dollars in January to 1.79 billion dollars in March and 1.82 billion dollars in April each.

Despite the improved figure, uncertainties faced by the South Korean economy remained such as the global economic slowdown, lower export prices and cheaper crude oil.

Imports reduced 9.3 percent from a year earlier to 32.7 billion dollars. Both exports and imports kept a downward trend for 17 months in a row.

Trade surplus reached 7.1 billion dollars in May, staying in black for 52 months since February 2012.

In terms of volume, the May exports grew 2.7 percent on a yearly basis, after increasing 5.3 percent in April. Export volume of petrochemicals, oil products and semiconductors increased last month.

By value, computer exports rose 3.6 percent, and home appliances shipment climbed 1.9 percent last month, the first increase in 22 months on the back of strong demand for premium products.

Exports of textiles and petrochemicals gained 1.1 percent and 0.2 percent each, but those for chips, general machinery, steel products, auto parts and cars reduced 4.1 percent, 0.5 percent, 4.0 percent, 2.7 percent and 7.1 percent respectively.

DRAM chip prices declined, but NAND flash memory chip prices showed a stable picture, helping slow the export fall in semiconductors. Steel product export fall also slowed amid higher export prices.

Exports of telecommunication devices, mainly smartphones, shrank 11.8 percent in April on the back of higher base for comparison, and ship exports dipped 16.6 percent on delayed delivery.

Exports of OLED display panels and cosmetics surged 30.3 percent and 60.7 percent respectively. Shipments in medicine and farm goods advanced 25.2 percent and 13.8 percent each.

By region, exports to Vietnam soared 17.7 percent in May, continuing an upward momentum for four months. Shipments to the United States inched up 0.7 percent, but those to China, South Korea's largest trading partner, declined 9.1 percent. Exports to Japan and the European Union (EU) also slid 12.4 percent and 13.1 percent each.

Meanwhile, imports of raw materials tumbled 12.4 percent amid lower commodity prices, and capital goods imports reduced 6.6 percent due to lackluster facility investment. Capital goods imports alone increased 5.8 percent last month. Endit