Exports expand for 12 straight months

Exports led by semiconductors are reinvigorating the economy.

The country’s exports totaled $44.98 billion in October, up 7.1 percent from the previous year, growing for 12 consecutive months, according to the Ministry of Trade, Industry and Energy.

Exports had been marking double-digit growth for nine consecutive months through September. The growth slowed down in October because of the 10-day Chuseok holiday. There were 4.5 fewer days in October this year compared with last year. Saturday is counted as a half day.

When normalized, the recovery in exports is evident. Daily average exports marked $2.5 billion in October this year, which is up 33.9 percent from the previous year.

Among the country’s 13 major export items, seven, including semiconductors, ships, steel and petrochemicals increased.

Most notable were semiconductors, which posted a 69.6 percent jump in exports. The country shipped $9.5 billion worth of chips in October. Among them, exports of multichip packages and organic light-emitting diodes marked record-highs.

Semiconductor exports have been rising for 13 consecutive months, thanks to the stable price of DRAMs, which are used for computers, and the introduction of new smartphones.

Oil products also saw a 10.3 percent rise in outbound shipments, thanks to strong oil prices. Ship exports also soared 36 percent, including high valueadded offshore plants and LNG vessels.

Exports of automobiles, machinery and textiles decreased as production of these items are more affected by working days.

The country’s total imports also continued picking up, standing at $37.65 billion in October, up 7.4 percent from the previous year.

The trade account marked a $7.33 billion surplus, sustaining a surplus for 69 straight months.

The government expects the country’s total trade to surpass $1 trillion this year, the first time since 2014. It explained that the rosy outlook for the global economy, increasing output in manufacturing, the boom in the info-tech industry and bullish bourses, will improve the conditions for trade.

Protectionism in trade and the possible U.S. key rate hike and geopolitical risks, however, remain as uncertainties.