In a significant boost to global trade, South Korea's exports have risen for the ninth consecutive month in June, driven by strong semiconductor sales to the United States. This continued growth highlights South Korea's vital role in the international trade landscape and reflects the resilient demand for high-tech products.
According to a Reuters poll conducted on Thursday, South Korea's exports are projected to have increased by 6.3% compared to the previous year. Although slightly slower than May’s 11.5% growth due to fewer working days in June, this positive trend underscores the robust health of South Korea's export sector.
As the first major exporting economy to report monthly trade figures, South Korea provides early indicators of global demand trends. "The trend of growing exports likely continued as semiconductor exports remained robust," noted Chun Kyu-yeon, an economist at Hana Securities. The solid demand from the United States, which now accounts for about 20% of South Korean exports, has been a key driver of this growth.
Preliminary data for the first 20 days of June shows an 8.5% rise in exports, with semiconductor shipments soaring by 50.2%. Exports to the United States increased by 23.5%, while those to China grew by 5.6%. This strong performance indicates that South Korea's exports are on track to reach near record-high levels in the first half of this year, as anticipated by the finance minister.
Looking ahead, the second half of the year is expected to see continued export growth, supported by economic recoveries in regions beyond the United States. Economists predict that while annual growth rates might moderate due to high comparison bases, the overall outlook remains positive.
The poll also forecasts a 2.2% decline in imports for June compared to a year earlier, following a 2.0% decrease in May. Despite this, South Korea's trade balance is expected to show a surplus for the 13th consecutive month, with a median estimate of $5.24 billion, up from $4.86 billion in May—the largest surplus since December 2020.
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