SEOUL: South Korea’s exports tumbled more than 10 percent in May, boosting worries about the export-driven economy, a government report showed Monday. Exports, which account for about half of the economy, plunged 10.9 percent from a year earlier to 42.39 billion U.S. dollars in May, according to the Ministry of Trade, Industry and Energy.
The exports kept a downward trend for five months in a row. The export decline accelerated from 0.9 percent in January to 3.3 percent in February, 4.3 percent in March and 8.1 percent in April respectively. For the first five months of this year, the exports reduced 5.6 percent from the same period of last year. Imports declined at a faster pace than exports, helping maintaining a surplus trend for 40 straight months since February 2012.
Imports dropped 15.3 percent to 36.07 billion dollars, sending the May trade surplus to 6.32 billion dollars. Economic slowdown in China and the United States, South Korea’s top two trading partners, led to a sharp fall in the country’s exports.
Exports to China and the United States fell 3.3 percent and 7.1 percent each in May from a year earlier, and those to the European Union (EU) declined 9 percent. Shipments to Japan tumbled 13.2 percent last month due to the Japanese yen’s weakness. The South Korean won surged 12 percent versus the yen in the past 12 months.
Export prices of oil-related products plunged amid low crude oil prices. It resulted in a sharp fall in exports of oil products and petrochemicals. Exports of oil products and petrochemicals sank 40 percent and 22.8 percent each last month.
Shipments of telecommunication devices, including smartphones, advanced 26.6 percent in May after sliding 5.2 percent in April. The expansion was attributable to the launches of new models, including LG Electronics’ G4 and Samsung Electronics’ Galaxy S6 smartphone.
Exports of chips and computers increased 4.8 percent and 22.3 percent each last month, but those for ships, steel products and consumer electronics tumbled 33.4 percent, 19.2 percent and 34.7 percent respectively. Shipments of cars and auto parts declined 7.9 percent and 13.7 percent each, with those for textiles, flat screens and general machinery reducing 15.1 percent, 6 percent and 3.5 percent respectively.
The country’s imports kept a downward trend for eight straight months since October last year. For the first five months of this year, the imports tumbled 16 percent from the same period of last year. Raw material imports plunged 22.1 percent amid cheaper oil, but those for capital and consumer goods increased 11.2 percent and 10 percent each, indicating a recovery in domestic demand.
