South Korea’s Exports Post First Decline in Four Months

(MENAFN) South Korea's exports posted their first decline in four months, hit by the adverse impact of newly imposed U.S. tariffs, according to government figures released Sunday.

Exports—vital to the country’s trade-reliant economy—fell 1.3% year-on-year to $57.27 billion in May, marking the first contraction since January, the Ministry of Trade, Industry and Energy reported.

Imports also fell, sliding 5.3% to $50.33 billion, which resulted in a trade surplus of $6.94 billion. This marked the fourth consecutive month of a positive trade balance.

Out of South Korea’s 15 key export categories, only five recorded growth in overseas shipments.

Semiconductor exports surged 21.2% to $13.79 billion, driven by heightened demand for advanced chips such as DDR5 and high-bandwidth memory (HBM) used in generative artificial intelligence systems.

Shipments of mobile devices rose 3.9% to $1.30 billion, fueled by strong smartphone demand. In contrast, display panel exports tumbled 18.0% to $1.34 billion.

Computer exports increased 2.3% to $1.07 billion, supported by robust demand for server solid-state drives (SSDs).

However, the automotive sector faced setbacks. Vehicle exports declined 4.4% to $6.20 billion due to reduced electric vehicle demand, while auto parts shipments dropped 9.4% to $1.66 billion.

Ship exports climbed 4.3% to $2.23 billion, but machinery exports fell 5.3% to $4.06 billion.

Oil product exports plummeted 20.9% to $3.58 billion, reflecting the impact of falling global prices. In May, international gasoline and diesel prices dropped 17.7% and 18.4% respectively compared to a year earlier.

Petrochemical exports slid 20.8% to $3.24 billion, weighed down by an oversupplied market and cheaper crude oil.

Shipments of steel products contracted 12.4% to $2.56 billion, while exports of secondary batteries dropped 18.4% to $520 million.

Exports of home appliances and textiles also saw double-digit declines, falling to $610 million and $850 million respectively.

Exports to the United States fell 8.1% year-on-year to $10.05 billion in May, continuing a downward trend for the second month amid softer car demand linked to the U.S. tariff policy.

Exports to the Association of Southeast Asian Nations (ASEAN) edged down 1.3% to $10.01 billion due to slumping oil product and petrochemical demand. Conversely, shipments to the European Union (EU) rose 4.0% to $6.05 billion.

Exports to other key regions also declined: Japan ($2.38 billion), Latin America ($2.21 billion), India ($1.62 billion), and the Middle East ($1.38 billion) all saw reduced volumes.

On the import side, inbound shipments of major energy resources—including crude oil, natural gas, and coal—fell 12.8% to $10.13 billion. Non-energy imports dropped 3.2% to $40.20 billion, largely due to declining demand for mobile phones and auto parts.

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