In August, South Korea experienced its 11th consecutive month of rising exports, though the growth rate slowed compared to previous months and fell short of market expectations. Exports increased by 11.4% year-on-year, reaching $57.90 billion. This was a deceleration from July’s 13.9% growth, which had been the fastest in six months, and also missed the anticipated 13.0% increase forecasted by economists.
The slowdown in growth was largely attributed to reduced demand for semiconductor exports, which hit a five-month low, and a continued decline in auto sales. The automotive sector faced challenges including wage negotiations and factory upgrades, contributing to a third straight month of sluggish performance.
Export performance varied by destination; while shipments to China grew at a slower rate, exports to the United States increased more rapidly. Notably, exports to the European Union surged by 16.1%, breaking a six-month streak of declines and setting a record high of $6.4 billion.
Despite the slower growth, South Korea’s exports are on track for a record-high performance for the year, according to Trade Minister Ahn Duk-geun. Imports also rose by 6.0% in August, totaling $54.07 billion, slightly under the expected 6.3% increase. This resulted in a trade surplus of $3.83 billion, a slight improvement from July’s $3.60 billion surplus.
