Exports Plunge to Lowest in Decade
02 January, 2020
Korea's exports dwindled 5.2 percent in December, in a declining streak lasting for 13 months. In the whole of last year they shrank 10.3 percent, the lowest since just after the global financial crisis in 2009.
According to the Korea Customs Service on Wednesday, exports totaled US$45.7 billion in December, down $2.49 billion on-year. Exports were sluggish throughout the year due to a semiconductor price crash, the trade war between Washington and Beijing, and an economic slowdown in China.
Exports of Korea's major items plunged 12.2 percent on-year, with semiconductors, the biggest, down a whopping 25.9 percent in money terms. Total export value amounted to a mere $542.4 billion last year, far below the $600 billion target. The trade surplus also amounted to just $39.2 billion, a seven-year low.
Trade totaled $1.046 trillion, above $1 trillion level for the third consecutive year but down 8.3 percent from last year. The only positive sign is that December exports slowed in the single digits for the first time in seven months and exports to China tentatively rebounded after 14 months.
/Yonhap
In the New Year, the overall export environment is expected to improve, but not until late January due to the long Lunar New Year holiday when a lot of business grinds to a halt.
This January will have just 21.5 working days, down from 24 last year due to Lunar New Year, which fell in February last year.
The Ministry of Trade, Industry and Energy will "spare no effort to make sure that exports will turn to growth during the first quarter of this year," a spokesman said.
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