Other key export items such as automobiles and petrochemical products, however, decreased in May
Korea’s exports in May turned downward for the first time in four months. While exports of semiconductors, a key product, recorded the highest level ever in May, exports of key items such as automobiles and petrochemical products decreased. Exports to the USA and China, Korea’s two largest markets, both decreased by 8%.
According to the Ministry of Trade, Industry and Energy (MOTIE), total exports in May amounted to $57.27 billion, down 1.3% from a year ago. This is the first time in four months that monthly exports have decreased compared to the same month last year since January (-10.1%).
Out of the 15 major export items, 10 items saw a decrease in exports. Steel and automobile exports to the United States, which are subject to a 25% tariff, decreased by 12.4% and 4.4%, respectively, compared to the previous year. During this period, exports of petroleum products and petrochemical products decreased by 20.9% and 20.8%, respectively. This is the result of the sharp drop in prices of both items due to the low oil price trend that has continued since the inauguration of the Trump administration in the United States.
Looking at Korea’s exports by region, they decreased in all seven of the nine major markets except for the European Union (EU) and the Commonwealth of Independent States (CIS). Exports to China decreased by 8.4% year-on-year to $10.4 billion due to a drop in exports of semiconductors and petrochemicals, the largest export items. Exports to the USA, where the impact of reciprocal and product tariffs started to be felt in earnest, also decreased by 8.1% to $10 billion during this period.
Despite the sluggish export performance by item and region, the total export decrease was limited to 1% because semiconductors, the largest export item, showed a record-breaking performance. In May, semiconductor exports surged by 21.2% year-on-year to $13.79 billion. This is the third consecutive month of double-digit growth and the largest May performance ever.
“In the case of semiconductors, the export of high value-added memory such as high bandwidth memory (HBM) and double data rate 5 (DDR5) continued to be brisk, while fixed prices also showed an upward trend,” explained a spokesperson for MOTIE. Exports of wireless communication devices (3.9%), such as smartphones, bio-health (4.5%), and ships (4.3%) also increased.
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