Seoul: Republic of Korea’s exports rose by 3.1 percent compared to the previous year in March, registering a second consecutive month of growth fueled by strong demand for semiconductors and other information technology (IT) products, as revealed by recent data.
According to Lao News Agency, outbound shipments reached US$58.3 billion last month, up from $56.5 billion in the same period last year, based on data compiled by the Ministry of Trade, Industry and Energy. Imports similarly increased by 2.3 percent year-on-year to $53.3 billion, culminating in a trade surplus of $4.98 billion.
March witnessed a significant 11.9 percent year-on-year rise in semiconductor exports, reaching $13.1 billion, which marked a recovery from a 3 percent decline in the previous month. This surge was attributed to heightened demand for high-value products such as high bandwidth memory and double data rate 5 (DDR5) memory chips.
The IT sector continued to perform well, with exports of computers, particularly solid-state drives, climbing 33.1 percent to $1.2 billion, marking 15 consecutive months of growth. Wireless communications device shipments increased by 13.8 percent to $1.3 billion, while display exports rose by 2.9 percent to $1.5 billion, breaking a seven-month downward trend.
Auto exports experienced a modest gain of 1.2 percent to $6.2 billion, driven by an uptick in hybrid and internal combustion engine vehicle shipments, which offset a decline in electric vehicle (EV) sales. Ship exports soared by 51.6 percent to $3.2 billion, reaching their highest monthly figure in 15 months, while bio-health product shipments grew by 13.2 percent to $900 million.
Conversely, exports of petroleum products fell by 28.1 percent to $3.3 billion, affected by decreased international oil prices and regular maintenance at major refineries. Steel exports also saw a decline, dropping 10.6 percent year-on-year to $2.6 billion.
By destination, exports to China decreased by 4.1 percent to $10.1 billion due to sluggish chip sales. Meanwhile, exports to the United States rose by 2.3 percent to $11.1 billion. Exports to Association of Southeast Asian Nations (ASEAN) countries increased by 9.1 percent to $10.3 billion, outperforming exports to China for the second straight month, driven by robust sales of chips and display products.
Exports to European Union (EU) countries advanced by 9.8 percent to $6.3 billion, driven by demand for ships and bio-health products. Shipments to the Middle East grew by 13.6 percent to $1.8 billion, marking two consecutive months of growth, while exports to Japan increased by 2.2 percent to $2.2 billion.
Industry Minister Ahn Duk-geun noted that March marked the second consecutive month of strong exports and a trade surplus, with all IT sectors posting export increases for the first time in eight months, despite ongoing trade uncertainties. He highlighted the government’s commitment to using “all available resources” to mitigate uncertainties for export industries, including continuing negotiations with the U.S. administration and implementing support measures for local industries.
The U.S. plans to enforce 25 percent tariffs on all imported cars starting Thursday (U.S. time) and is set to declare reciprocal tariffs for its trading partners on Wednesday.