Roundup: S.Korea's exports post highest growth in 5 years on strong chip demand

South Korea's exports posted the highest growth in five years due to solid demand for semiconductors that has led recent export recovery, a government report showed on Wednesday.

Exports, which account for about half of the export-driven economy, advanced 20.2 percent from a year earlier to 43.2 billion U.S. dollars in February, according to the Ministry of Trade, Industry and Energy.

It was the fastest expansion in five years since February 2012, keeping the double-digit growth for two months in a row. In January, the outbound shipments jumped 11.2 percent.

Daily exports averaged 1.96 billion dollars in February, up 9.3 percent from a year ago. The daily shipments grew for the third consecutive month.

Demand for locally-made semiconductors led the export recovery. Chip exports reached a record monthly high of 6.4 billion dollars on demand for chips used for smartphones.

Petrochemical exports amounted to 3.81 billion dollars in February, the biggest since October 2014, as expanded facilities raised production amid higher prices of exported products.

Auto shipments rebounded for the first time in two months on increased exports to emerging markets, with those for oil products, display panels and steel products rising in February from a year earlier.

Textile exports rose for the first time in three months as demand from China increased during the Lunar New Year holidays.

Exports of telecommunication devices, such as smartphones, declined as negative effect from Samsung Electronics' Galaxy Note 7 debacle continued.

The latest flagship Samsung smartphone had been discontinued for reports globally of the gadgets catching fire or even exploding. The release of Galaxy S8 smartphone was delayed on the Note 7 catastrophe.

Cosmetics exports surged 83.1 percent last month, marking the second-biggest monthly shipments in history due to demand from China, South Korea's biggest trading partner.

By region, exports to China, Japan, India, the European Union (EU) and ASEAN nations increased in February, with those to the United States and Latin American countries turning upward last month.

South Korea's exports to China kept rising for the fourth consecutive month, the first such growth in almost three years.

Imports jumped 23.3 percent over the year to 36.0 billion dollars, sending the trade surplus to 7.2 billion dollars. The trade balance has stayed in the black for 61 months in a row.

Despite the robust exports recovery in recent months, the South Korean economy still faces external uncertainties such as U.S. President Donald Trump's expected protectionist moves.

Rumors that the U.S. may designate South Korea as a foreign exchange manipulator rattled the foreign exchange market in South Korea. Growing foreign exchange volatility risks stable proceedings for local exporters. Enditem