South Korea's export fell for the 11th consecutive month due to soft global demand for locally made products, especially semiconductors and oil products, government data showed Friday.
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Export, which accounts for about half of the export driven economy, shrank 8.4 percent from a year earlier to 51.87 billion U.S. dollars in August, continuing to slide since October last year, according to the Ministry of Trade, Industry and Energy.
Import tumbled 22.8 percent to 51 billion dollars last month compared to the same month of last year.
Affected by the faster fall in imports than exports, the trade balance recorded a surplus of 0.87 billion dollars.
The trade balance stayed in black for the third successive month, but it was a recession style surplus caused by the reduction in both exports and imports.
The export reduction was attributable to the still weak global demand for chips and oil products.
Semiconductor exports diminished by 20.6 percent over the year to 8.56 billion dollars in August, keeping a downward trend for the 13th straight month since August last year on the back of lower memory chip prices.
Shipment for petrochemicals and oil products dropped in double digits to 3.88 billion dollars and 4.29 billion dollars each amid the cheaper crude oil.
Dubai crude, South Korea's benchmark, traded at 86.40 dollars per barrel in August, down from 96.63 dollars a year earlier.
Steel products shipment retreated 11.2 percent to 2.86 billion dollars amid lower product prices, and mobile phone export dwindled 7.8 percent to 1.22 billion dollars on the weakened global demand.
Display panel export climbed 4.1 percent to 1.91 billion dollars last month on higher demand for OLED panels, but computer shipment plunged 54.6 percent to 520 million dollars.
Automotive exports soared 28.7 percent to 5.29 billion dollars in August, continuing to gain for the 14th consecutive month on strong demand for eco-friendly vehicles.
General machinery shipment gained 7.7 percent to 4.10 billion dollars, keeping an upward trend for the fifth straight month on higher facility investment in the United States and the European Union (EU).
Auto parts export rose 5.9 percent to 1.91 billion dollars last month, but secondary battery shipment diminished by double digits to 740 million dollars.
By region, exports to the Association of Southeast Asian Nations (ASEAN) retreated 11.3 percent from a year earlier to 9.60 billion dollars in August on weaker demand for tech products.
Shipment to the United States and the EU added in single digits to 8.96 billion dollars and 5.54 billion dollars each.
Export to Latin American countries went down 11.1 percent to 1.98 billion dollars, but shipment to the Middle East grew 6.7 percent to 1.42 billion dollars.
Meanwhile, the double-digit fall in imports was caused by lower energy import costs.
Import for crude oil, natural gas and coal dipped more than 40 percent in August compared to the same month of last year.
Local demand for imported chips, steel products and semiconductor equipment all declined last month.
Import for lithium hydroxide and lithium carbonate, or materials necessary to produce secondary batteries, advanced in double figures. ■