Korea records first trade surplus in 16 months

South Korea’s exports declined for the ninth consecutive month in June due to weak demand for semiconductors, but the country posted its first trade surplus in 16 months.

Exports fell 6 per cent year-on-year to $54.24 billion last month, according to data from the Ministry of Trade, Industry and Energy.

The decline came as semiconductor exports, the country’s main export component, declined 28 per cent due to lower demand and lower chip prices, according to Korean news agency Yonhap.

Imports fell 11.7 per cent year-on-year to $53.11 billion in June, the ministry said, noting that energy imports fell 27.3 per cent year-on-year, as South Korea relies on imports for most of its energy needs. As imports declined, the country recorded a trade surplus of $1.13 billion last month, ending a trade deficit for 15 consecutive months. Imports in South Korea exceeded exports from March 2022 until May this year due to higher energy prices, the country’s longest trade deficit since 1997 when the trade deficit suffered for 29 consecutive months from January 1995 to May 1997. In the context of China, government data showed yesterday that the proportion of passengers in Korea using Korean-flagged air carriers reached 84 per cent of pre-pandemic levels in the first half of this year.