S. Korea’s exports grow for 14th month in November on record shipments of chips

South Korea’s exports posted year-on-year growth for a 14th consecutive month in November, driven by record semiconductor shipments, data from the Ministry of Trade, Industry and Energy showed on Sunday.

Outbound shipments rose 1.4 percent from a year earlier to $56.3 billion last month, while imports fell 2.4 percent on the year to $50.7 billion, resulting in a trade surplus of $5.61 billion. The country has maintained a trade surplus for 18 consecutive months.

By sector, semiconductor exports rose 30.8 percent to $12.5 billion, the highest amount for November on record. This also marked the fourth consecutive month of new highs in monthly chip exports, supported by strong demand for premium models such as high-bandwidth memory chips.

However, auto exports fell 13.6 percent on the year to $5.6 billion due to production disruptions caused by a strike at major auto parts makers and adverse weather conditions that delayed shipments.

Shipments of oil and petrochemicals fell by 18.7 percent and 5.6 percent, respectively, amid falling crude oil prices. Meanwhile, the biohealth sector saw a 19.6 percent increase to $1.4 billion, marking five consecutive months of growth. Exports of ships rose 70.8 percent to $2.5 billion.

However, exports of batteries fell 26.3 percent to $658 million, reflecting weaker global demand for electric vehicles.

By destination, exports to China, South Korea’s biggest trading partner, fell 0.6 percent to $11.28 billion, affected by weaker consumer satisfaction and sluggish demand for mobile devices in the Chinese market.

Exports to the United States fell 5.1 percent to $10.39 billion, primarily due to losses in the auto and machinery sectors. However, semiconductor exports to the US gained ground, supported by robust demand from the data center and cloud computing industries.

Shipments to Southeast Asian countries rose 0.4 percent, boosted by chip exports, while exports to the EU rose 0.9 percent, driven by demand for biohealth products and ships.

“In November, there were unexpected obstacles in exports, including the strike by auto parts manufacturers, which led to reduced car production and weather conditions that disrupted shipments,” Industry Minister Ahn Duk-geun said in a statement.

“However, South Korea has been able to maintain 14 consecutive months of export growth along with 18 consecutive months of trade surplus, thanks to the strong performance of key items including chips and ships,” Ahn added.

During the January-November period, South Korea’s exports rose 8.3 percent on the year to $622.2 billion, a sharp rebound compared to the 7.4 percent decline recorded for all of 2023. (Yonhap)