SEOUL: South Korea’s exports, which form the main pillar of the country’s economy, decreased 5.9 percent in September, compared to the same period last year, the government said Sunday. Sales abroad for the ninth month of the year added up to $40.9 billion, according to the Ministry of Trade, Industry and Energy.
South Korean imports fell 2.3 percent for the same period on a year-on-year basis, amounting to $33.8 billion, which results in a positive trade balance of $7.1 billion.
South Korea has continuously maintained a positive trade balance since February 2012, although it has been on the downslide in recent months. The ministry attributed the fall in exports to the decrease in automobile production, caused by trade union strikes in the sector. The strikes resulted in a 24 percent year-on-year drop in automobile exports – the biggest since August 2009.
The electronics sector also took a hit, with exports falling 27.9 percent due to the recall of Samsung Galaxy Note 7 smartphones over its battery problems. The slowdown in China, South Korea’s main trading partner, also affected the country’s economy over the last year. In September, South Korean exports to the world’s second largest economy fell for the 14th consecutive month, this time by 9.1 percent. Exports to the United States dropped 6.1 percent while those to the European Union decreased 14.5 percent.
