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Korea's exports set to extend slump to 9th month on chip slump: poll

Economy 11:00 August 28, 2019

SEJONG, Aug. 28 (Yonhap) -- South Korea's exports are set to extend their slump to an ninth consecutive month in August, a poll showed Wednesday, amid the protracted decline in prices of semiconductors and weak demand from China.

The country's outbound shipments are expected to reach US$44 billion for August, down 14 percent from a year earlier, according to the poll by Yonhap Infomax, the financial news arm of Yonhap News Agency, on local brokerage houses.

Analysts attributed the sluggish exports to a continued dip in prices of memory chips, the mainstay export products of Asia's No. 4 economy, along with the drawn-out trade dispute between the United States and China, South Korea's top two trading partners.

Exports already declined 13.3 percent in the first 20 days of August from a year earlier to $24.9 billion, earlier data showed. By product, exports of semiconductors, a key export item for South Korea, slipped 29.9 percent on-year.

The data also showed that South Korea's exports to China and Japan fell 20 percent and 13.1 percent, respectively.

The trade tussle between South Korea and Japan is emerging as another hurdle for the country's exports, analysts added.

Japan implemented export restrictions on key industrial materials to South Korea last month. The neighbor also dropped Seoul from its list of trusted trade partners, which took effect earlier in the day.

Seoul's outbound shipments fell 11 percent on-year to reach $46.1 billion last month. For the January-July period, the country's exports sank 8.9 percent on-year to reach $317 billion, the data showed. Imports moved down 4.7 percent to $295 billion.

Korea's exports set to extend slump to 9th month on chip slump: poll - 1

colin@yna.co.kr
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