▲ Containers are stacked at a pier in the southeastern port city of Busan, in this July 4, 2023, file photo. (Yonhap)

(2nd LD) exports-July

(2nd LD) Exports down 15.2 pct during first 20 days of July

(ATTN: UPDATES with more details in last 5 paras with BOK report)

SEJONG, July 21 (Yonhap) -- South Korea's exports fell 15.2 percent on-year in the first 20 days of July amid the protracted slump in the chip sector, data showed Friday.

The country's outbound shipments reached US$31.2 billion in the July 1-20 period, compared with $36.8 billion tallied a year earlier, according to the data from the Korea Customs Service.

Imports fell 28 percent on-year to $32.6 billion during the period, resulting in a trade deficit of $1.36 billion.

By sector, exports of chips, the backbone of Asia's No. 4 economy, plunged 35.4 percent over the period to $4.3 billion.

Outbound shipments of automobiles, on the other hand, shot up 27.9 percent to reach $3.43 billion.

Overseas sales of steel and petroleum products moved down 15.2 percent and 48.7 percent to $2.43 billion and $2.27 billion, respectively, the data also showed.

By destination, exports to China, the top trading partner, fell 21.2 percent to $6.34 billion amid the delayed impact of its reopening.

Exports to the United States moved down 7.3 percent to $5.76 billion, while those to the European Union decreased 8.3 percent to $3.59 billion.

Shipments to Vietnam fell 22.6 percent to $2.66 billion.

In June, South Korea's outbound shipments fell 6 percent on-year to $54.24 billion. But the month posted the smallest on-year export decline so far this year, possibly indicating the country's exports may rebound in the second half of the year.

The country reported a trade surplus for the first time in 16 months in June.

South Korea announces its full monthly export report on the first day of each month.

As of Thursday, the combined trade deficit for this year had reached $27.8 billion. Exports fell 12.6 percent on-year to $338.4 billion.

In a separate report, the Bank of Korea (BOK) said the country's exports may not experience a significant rebound even if the technology sector improves, citing sluggish demands from China.

"Even if the weak performance of the information technology industry improves, exports are not anticipated to rebound in a wide margin as they did in the past, considering the changing industrial structures by countries," the central bank said in the report.

The bank added South Korean products have become less competitive in the Chinese market as well.

In its analysis, the BOK revealed 65 percent of the decline in South Korea's exports to China during the first four months of 2023 can be attributed to economic factors, while the remaining 35 percent is linked to the competitiveness of the products.

The central bank added South Korea may encounter increased pressure to diversify its export portfolio, as heavy reliance on specific products or destinations could make the country more vulnerable to external fluctuations.

(END)

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