South Korea’s trade surplus of auto parts on decline
South Korea’s trade surplus of auto parts decreased on-year in the first 11 months of this year, data showed, amid sluggish sales of local vehicles overseas.
The figure came to $16.19 billion in the January-november period, down 11.8 percent from a year earlier, according to the data compiled by the Korea International Trade Association (KITA), Yonhap reported.
South Korea’s outbound shipments of auto parts decreased 8.8 percent to $21.33 billion over the cited period, while its imports edged up 2 percent to $5.16 billion, the latest data showed.
The country’s exports of auto parts have been decreasing after reaching its peak of $22.67 billion in 2014.
Industry watchers said the combined trade surplus of the sector is expected to hover below $20 billion this year under the current trend, which would mark the first time in six years it has hit such a low after posting $17.24 billion in 2011.
“This year’s auto parts trade surplus decreased due to the poor performance of Korean vehicles in the US and Chinese markets,” a researcher said.
Hyundai Motor Co., South Korea’s No. one automaker, said its net profit fell 30 percent to 3.26 trillion won ($3 billion) in the January-september period from 4.65 trillion won a year earlier due to a lack of new models and sharp sales declines in China in the wake of a diplomatic row over a US anti-missile system.