S. Korea exports slip 0.1pc to US $51.2b

South Korea’s export growth came to a halt last month as shipments of cars and consumer electronics fell sharply, casting a shadow over prospects for this year amid escalating trade tension between China and the United States.

Exports totalled US$51.2 billion (RM206.87 billion), down 0.1 per cent from a year earlier, below a gain of 0.4 per cent forecast in a Reuters survey and falling back after a 13.2 per cent jump in May.

Imports were up 10.7 per cent from a year ago, underperforming the survey’s forecast for an 11.4 per cent increase.

The export sector’s sudden loss of growth may herald tougher times after a stellar performance over the past year, as Asia’s fourth-largest economy could become caught in the crossfire following the retaliatory imposition of tariffs by the US, China and the European Union.

Of the nation’s 13 major export items, shipments of seven items, including semiconductors, petrochemical products and computers, gained, according to the nation’s trade ministry.

Car exports dragged the overall exports by declining 9.9 per cent year-on-year, while exports of display panels and consumer electronics dropped 10.5 and 21.6 per cent, respectively.

Exports to China surged 29.8 per cent, while shipments to the US gained 7.6 per cent for the first 20 days of last month.

Shipments to Asean and the Middle East declined 1.3 and 10.4 per cent, respectively.