Korean Exports to China Continue to Fall

Extending to a seventh straight month of decline, South Korea’s trade-reliant economy is feeling the heat as Chinese demand cools and global commodity prices drop again.

The first half of this year showed an alarming downfall in Korea’s major exports to China. It fell 6.4 percent compared to the same period last year. This is of special concern to Korea as exports to China account for approximately one-quarter of the country’s overseas markets.

The Chosun Ilbo and the Korea International Trade Association (KITA) analyzed and confirmed that seven of the top 10 exports and 19 of the top 30 exports to China did worse this year.


 

“China’s economic slowdown compounded by increasing sophistication in industrial structure and strong performances of local businesses are dealing a severe blow to Korea’s key exports.”

The demand for shipments of car parts, petrochemical products, mobile phones and flat screens have all declined. Aside from this, the fast growth of Chinese smartphone makers is causing additional headaches for Korean exporters of chips and computer components.

The only time exports dwindled to this extent was during the peak of the Asian financial crisis in 1998, after the dotcom bubble burst in 2001, and following the global financial crisis in 2009.

Yet, this time, there is no devastating financial crisis to attribute to this year’s downfall.


 

“China’s economic slowdown compounded by increasing sophistication in industrial structure and strong performances of local businesses are dealing a severe blow to Korea’s key exports,” said KITA’s Shin Seung-kwan.

Overall fall in Korean exports

Exports saw a decline of 3.3 percent on-year to $46.61 billion in July while imports dropped 15.3 percent to $38.85 billion, leaving Korea with a trade surplus of $7.76 billion according to the trade ministry.


 

[mc4wp_form]

 

Read More

Creative Work

subscribe & get more brand in your diet

newsletter

get more brand in your diet

We never share your info,
we only share ours