SEOUL: South Korea’s exports have posted a 2.1-percent increase so far this month from a year earlier, raising hopes of an end to negative growth that lasted for more than a year, data showed Sunday. Outbound shipments totaled US$24.8 billion from May 1-20, up 2.1 percent from the same period last year, according to the Korea Customs Service (KCS). It marks the first time in 2016 for South Korea’s export volume to record an increase on-year in the first 20 days of a month.
South Korea, a major regional economy, suffered declines in its exports for the 16th consecutive month until April, hit by a drawn-out slump in demand and fall in oil prices. Overall exports shrank 11 percent on-year to around $181.5 billion from Jan. 1 to May 20 this year.
The rebound of exports in the first three weeks of May is attributable to growth in the shipments of vehicles and related parts to the United States, said the KCS. Local carmakers have expanded production in their factories abroad. The exports of car parts jumped 15 percent during the period, with those to the U.S. mounting 36.9 percent, it added.
Shipments of TVs and other home devices also soared 44.9 percent, boosted by better performances in Vietnam and China. Another positive sign is that global oil prices are showing a trend of hikes. The price of Dubai crude oil climbed $1.26 to $45.65 last week from a week earlier. The prices of crude oil are closely associated with those of petrochemical products, a main export item of South Korea. But it remains to be seen whether the growth trend in South Korea’s exports, shown in the past few weeks, will continue through the end of May, with only seven business days left, noted KCS officials.
