Seoul: South Korea’s exports to China fell by 26% in the first half of this year as a slowdown in the global economy cut demand for the Chinese government’s chip and display products, data reported in Yonhap News on Friday.
Outbound shipments to China totaled US$60.18 billion, compared with US$81.38 billion in the first half of the year, according to industry ministry data.
Sales of major export items fell, with semiconductors to China down 39.8% and display products down 47.9%. Exports of petrochemical products also decreased by 23.9% year-on-year in the first half.
The decline was due to sluggish exports of China’s major IT products amid the global economic slowdown, which reduced Chinese demand for South Korean chips and intermediate products, the ministry said.
On a monthly basis, South Korea reported its 13th consecutive month of year-on-year declines in exports to China through June, and its ninth consecutive month of trade deficits.
China is South Korea’s largest trading partner, accounting for 23.2% of South Korea’s total exports in the first half of 2023. However, this year’s figure is down 1.9 percentage points from 25.1% in the same period last year.
South Korea’s exports to the Association of Southeast Asian Nations (ASEAN) also fell 20.4% in the first half due to weak demand from South Korea for chips and display products.
However, Korea’s exports to the US and the European Union increased by 0.3% and 5.7%, respectively, in the first half of the year.
Trade Minister Andeok-geun said, “The top priority for the economy in the second half of the year is to expand exports.” “The government will expedite the signing of trade and investment promotion frameworks with emerging countries and closely monitor the difficulties faced by exporters,” it said. –bernama