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Key Points

South Korea's exports fell by 1.3% in May, marking the end of a three-month growth streak. The decline was significantly impacted by the US government's tariffs, particularly affecting the automotive sector. Shipments to the US and China dropped due to these policies and lower demand for semiconductors. Conversely, South Korean exports to the EU increased, driven by rising demand for automobiles and semiconductors.

Key Points: South Korea Exports Fall Amid US Tariff Impact in May

  • Exports fell 1.3% to $57.3 billion in May
  • US tariffs hit South Korean auto sector hard
  • Exports to China fell due to low semiconductor demand
  • EU bucked trend with rising demand for Korean products
2 min read

South Korea's exports down 1.3 pc to $57.3 billion in May

South Korea's exports fell by 1.3% in May as US tariffs affected key sectors, with shipments to both the US and China declining.

"The U.S. tariffs seem to be affecting the global economy and South Korea's exports. - Ahn Duk-geun"

Seoul, June 1

South Korea's exports dropped 1.3 per cent from a year earlier in May, snapping a three-month winning streak, as outbound shipments to the United States sharply went down amid the U.S. President Donald Trump administration's sweeping tariff policies, government data showed on Sunday.

Outbound shipments came to US$57.3 billion last month, compared with $58.02 billion a year ago, according to data compiled by the Ministry of Trade, Industry and Energy.

Imports shrank 5.3 percent on-year to $50.3 billion, resulting in a trade surplus of $6.94 billion, reports Yonhap news agency.

In May, shipments to the U.S. slid 8.1 percent from a year ago to $10 billion mainly due to the weak exports of the automotive sector, hit by the Trump administration's 25 percent tariffs.

Exports to China also decreased 8.4 percent on-year to $10.4 billion on low demand for semiconductors and petrochemical products, while exports to the Association of Southeast Asian Nations (ASEAN) lost 1.3 percent to $10 billion.

On the other hand, exports to the European Union gained 4 percent to $6 billion, up for the third consecutive month, on strong demand for automobiles and semiconductors.

"The U.S. tariffs seem to be affecting the global economy and South Korea's exports, proven by a decrease in South Korea's exports to the two biggest markets -- the U.S. and China," Industry Minister Ahn Duk-geun said.

"In particular, the sharp drop in international oil prices to the low $60 range in May led to a more than 20 percent on-year decline in exports of petroleum and petrochemical products, which was another major factor in the overall decrease in outbound shipments," he added.

By item, chip exports climbed 21.2 percent on-year to $13.8 billion, the highest figure for any May, on robust demand for high-value products, such as high bandwidth memory (HBM).

Outbound shipments of wireless communications products added 3.9 percent to $1.3 billion, driven by a 30 percent jump in smartphone exports.

Exports of computers, including solid state drives, increased 2.3 percent to $1.1 billion, while exports of biohealth products and vessels rose 4.5 percent and 4.3 percent to $1.4 billion and $2.2 billion, respectively.

Auto shipments, however, fell 4.4 percent to $6.2 billion on sluggish exports to the U.S.

Exports of petroleum products slipped 20.9 percent to $3.6 billion, while petrochemical exports dipped 20.8 percent to $3.2 billion.

Agro-fisheries and cosmetics exports, meanwhile, expanded 5.5 percent and 9.3 percent to both hit a record high of $1 billion.

—IANS

- IANS

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Reader Comments

R
Rajesh K.
Interesting to see how US-China trade tensions are affecting other economies too. South Korea's semiconductor exports are still strong though - maybe India can learn from their tech manufacturing strategy? We need to boost our electronics exports too.
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Priya M.
The drop in auto exports to US shows how dependent Korea is on American market. India should diversify its trade partners more aggressively. Our Make in India initiative should focus on multiple markets, not just US or China. 🇮🇳
A
Amit S.
Surprised to see EU doing better while US and China decline. Maybe European markets are more stable? India should strengthen trade with EU too - their demand seems consistent despite global slowdown.
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Sunita R.
The 21% growth in chip exports is impressive! Shows how important tech manufacturing is for modern economies. India's semiconductor policy needs to move faster if we want to compete with Korea in this sector. Better late than never though!
V
Vikram J.
Korea's experience shows how vulnerable export-dependent economies are to trade wars. India's domestic consumption focus might be our strength during such times. But we still need to boost manufacturing for jobs and growth.
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Neha P.
Interesting that cosmetics exports hit record high! Korean beauty products are very popular here too. Indian brands should learn from their marketing and quality standards. We have great Ayurvedic products that could do well globally if packaged right.

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