SEOUL: South Korea posted a trade surplus for the 42nd month in a row in July as imports dropped at a much faster pace than exports, customs data showed Thursday.
According to the data by the Korea Customs Service, the country’s trade surplus reached $7.72 billion last month, up significantly from $2.34 billion the year before but smaller than the $9.91 billion reached in June.
Exports contracted 3.4 percent on-year to $46.56 billion in July, while imports nosedived 15.3 percent to $38.84 billion. In July 2014, exports hit $48.2 billion, with imports standing at $45.86 billion.
The KCS said that while exports edged down 0.1 percent from the month before, imports actually increased 5.9 percent. South Korea’s trade account has been in the black since February 2012.
Last month, semiconductor exports rose a solid 6.3 percent on-year, with numbers for ships and certain communications equipment jumping 58.2 percent and 13.8 percent, respectively.
On the downside, overseas shipments of cars and automobile parts fell 6.3 percent and 7.2 percent, respectively, with refined petroleum products, liquid crystal devices and consumer electronics all losing ground.
By region, exports to the United States moved up 1.7 percent on-year, while shipments to China, South Korea’s largest trading partner, dropped 6.4 percent. Exports to Japan were down 28.1 percent last month from a year earlier.
The KCS data showed imports of computer chips rose 6.3 percent on-year in July, with information technology imports climbing 14.3 percent. Inbound shipments of crude oil plunged 35 percent, with numbers for machinery, steel products and minerals all backtracking last month. Imports from the U.S. and China rose, while shipments from the Middle East, Japan and Australia fell.
In the first seven months of 2015, the country’s cumulative exports reached $315.2 billion, down 4.9 percent from a year earlier, while imports came to $261.2 billion, representing a 15.5 percent drop.
In the January-July period, the country’s trade surplus stood at $54 billion, much larger than the $22.2 billion in the black posted for the same period in 2014, according to the KCS data. The total also surpassed last year’s annual trade surplus of $47.2 billion.
