Home NewsStock Market News South Korea’s high trade deficit in the first half of the year was mainly affected by high energy prices | Anue Juheng – Eurasian Shares

South Korea’s high trade deficit in the first half of the year was mainly affected by high energy prices | Anue Juheng – Eurasian Shares

by WOOWinvest
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South Korea’s high trade deficit in the first half of the year was mainly affected by high energy prices | Anue Juheng – Eurasian Shares


South Korea announced on Friday (1st) that its trade deficit in the first half of this year reached 10.3 billion US dollars, a record high for the same period. In June, it also recorded a trade deficit of 2.47 billion US dollars, which was the third consecutive three-month deficit after 14 years. The main reason is related to soaring energy prices.

According to the latest trade balance data from South Korea’s Ministry of Trade, Industry and Energy, exports in June rose 5.4 percent year-on-year, with strong demand for semiconductors and petroleum products from overseas. However, due to soaring international energy prices, South Korea has had a trade deficit for three consecutive months as of June.

South Korea’s exports in the first half of this year increased by 15.6% to 350.3 billion U.S. dollars, a new high for the same period, while imports increased by 26.2% to 360.6 billion U.S. dollars; the trade deficit reached 10.3 billion U.S. dollars, the first trade deficit of over 10 billion U.S. dollars in the same period, and a new record A record deficit of $9.16 billion for the same period in 1997. On a semiannual basis, the largest trade deficit in South Korea’s history was a deficit of US$12.55 billion recorded in the second half of 1996.

South Korea’s monthly export volume from January to June this year hit a new high for the same period, and March and May ranked the top two in monthly export volume respectively. In the first half of the year, the total export volume reached a new high, and the average daily export volume reached 2.62 billion US dollars, the same as the new high.

Among South Korea’s 15 major export items, all except shipbuilding increased. Semiconductors, steel, petroleum products, biotechnology and batteries all recorded new highs in the first half of the year.

In terms of countries and regions, exports to the United States, China, the European Union, and the ASEAN all set new highs in the first half of the year. Exports to the Commonwealth of Independent States (CIS) declined due to the situation in Ukraine.

South Korea’s imports in the first half of the year, affected by soaring energy and raw material prices, reached US$360.6 billion. Among them, energy imports such as crude oil and natural gas increased by 87.5% year-on-year to US$87.9 billion, which was the biggest cause of the trade deficit.

In June alone, exports rose 5.4% to US$57.73 billion, imports rose 19.4% to US$60.2 billion, resulting in a trade deficit of US$2.47 billion. Among them, the export of semiconductors, petroleum products and steel reached a new high in the same period; the trade volume exported to the United States, India, and ASEAN also recorded a new high in the same period. In terms of imports, imports of energy such as oil and natural gas increased by 63.7% year-on-year to US$13.73 billion.

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