SEOUL: South Korean exports grew at their fastest pace in five years in February in a further sign that global demand is strengthening, even as trade-reliant economies brace for a possible rise in U.S. protectionism.
Both exports and imports grew more than expected, jumping 20.2 percent and 23.3 percent respectively, and both at the strongest pace since February 2012, data showed.
The trade ministry said exports to China, South Korea’s biggest customer, surged 28.7 percent on-year, posting the best growth since late 2010. Semiconductor exports posted their best monthly performance on record, riding on strong electronics demand.
“February data shows that there is clear export resurgence, as exports in terms of both price and volume seem to be increasing,” said Lee Sang-jae, an economist for Eugene Investment & Securities in Seoul.
Shipments to the United States rose 1.7 percent in annual terms, snapping two months of falls, on more demand for cars, oil products and heavy electric equipment.
The trade surplus with the United States stood at $1.56 billion last month, down from $2.17 billion in February last year, the ministry said, on South Korean imports of U.S semiconductor manufacturing machinery and aircraft.
South Korea has had monthly trade surpluses with the United States since August 2011.
The headline February trade surplus stood at $7.22 billion. The rise in exports had largely been expected as the finance minister had announced the gain last week.
