15.2% drop in Korea’s exports in 20 days

Korea’s exports fell by 15.2 per cent year-on-year in the first 20 days of July amid a protracted slump in the chip sector.

Exports reached $31.2 billion from July 1 to 20, compared with $36.8 billion in the same period last year, according to data released by the Korean Customs Service yesterday.

In June, exports fell 6 per cent year-on-year to $54.24 billion. This month, however, it recorded the lowest year-on-year decline in exports so far this year, suggesting that exports could rebound in the second half of the year. The country recorded a trade surplus for the first time in 16 months in June.

South Korea’s economic growth forecast fell to 1.3 per cent, according to the Asian Development Bank, which noted a slowdown in exports and investment.

Authorities in Korea also cut their growth forecast earlier in the month by 0.2 percentage points to 1.4 per cent.

In June, the Organisation for Economic Cooperation and Development (OECD) lowered Korea’s 2023 economy growth forecast by 0.1 percentage points to 1.5 per cent