Exports in August ‘very good’ Minimized impact on exports through close inspection of Middle East situation
The Ministry of Trade, Industry and Energy (Minister Ahn Deok-geun, hereinafter referred to as the Ministry of Trade, Industry and Energy) held an export trend review meeting chaired by First Vice Minister Park Seong-taek on August 26 to inspect export conditions for each major item and discuss ways to expand exports.
Korea’s exports showed an increase for 10 consecutive months until July, and cumulative exports amounted to $392.5 billion, up 9.8% from the previous year. The trade balance has been recording a surplus for 14 consecutive months, and as of July 2023, a cumulative surplus of $26.8 billion was recorded, more than double last year’s overall deficit ($10.3 billion).
By major item, exports of information technology (IT) items, including semiconductors ($76.9 billion, +52% from January to July 2024), the largest export item, increased 41% compared to the previous year as of July this year, reaching $102.3 billion. This led to a strong increase in our exports. The second-ranked item, automobiles (USD 42.4 billion, +2%), and the third-place item, general machinery (USD 31.1 billion, +0.2%), recorded the highest export performance ever during the same period. Exports of key items such as ships (USD 12.9 billion, +19%), petroleum products (USD 31 billion, +9%), and petrochemicals (USD 28.6 billion, +7%) are also continuing to show a strong trend.
First Vice Minister Park Seong-taek said, “This year, among the top 10 global exporting countries, Korea is recording the highest export growth rate,” adding, “Exports have shown a solid upward trend since October of last year and are playing an important role in leading our economic growth.” evaluated.
He continued, “It is certain that exports will increase for 11 consecutive months and surplus for 15 consecutive months in August, and the public and private sectors will work together as a team to utilize all available resources to ensure that the upward trend in exports continues until the end of the year and achieve the highest export performance ever this year.” “I will support you,” he said.
Meanwhile, Vice Minister Park urgently inspected our import and export situation on August 25, as concerns were raised that the situation in the Middle East would intensify due to fighting between Israel and Hezbollah.
Vice Minister Park said, “The Middle East is an important region that supplies 72% of the crude oil and 32% of the gas that our country imports.” He added, “There are currently no problems with the introduction of crude oil and LNG into the country, and there are no oil tankers loading or sailing near the Middle East.” and LNG carriers are also operating normally.”
He also emphasized, “The government, industry, and institutions will respond preemptively in preparation for emergency situations, and we will respond thoroughly to ensure that there are no disruptions in domestic energy supply and demand in the event of an emergency.”
Vice Minister Park said, “The proportion of exports to the Middle East (2.8% in the first half of 2024) is not large, but if the instability of the situation in the Middle East deepens, it may become a risk factor for our exports through oil prices and logistics costs,” adding, “So far, the “Shipment and delivery are proceeding without disruption, but preemptive response is needed to minimize future negative impacts,” he emphasized.
To this end, he requested, “We will carefully inspect the situation in the Middle East in real time and implement emergency plans for each scenario without a hitch, centered on the public-private joint ‘Export Emergency Response Team’ formed with export-related organizations such as KOTRA, Korea Trade Insurance Corporation, and Korea Trade Association.” .
Editor. Seyeong Hong
