S. Korea's exports shrink 1 pct in January-May amid U.S. tariffs, Mideast tensions

SEOUL, June 23 (Yonhap) -- South Korea's exports decreased nearly 1 percent from a year earlier in the January-May period amid the rise of trade protectionism in major economies, including the United States, and growing tensions in the Middle East, Seoul's industry ministry said Monday.

Outbound shipments came to US$274.9 billion in the first five months of the year, down 0.9 percent from a year ago, according to the Ministry of Trade, Industry and Energy.

Auto exports went down 2.5 percent on-year to $30 billion won, with shipments to the U.S. plummeting 16.6 percent due to the Donald Trump administration's 25 percent tariffs on all imported cars.

Exports of petroleum and petrochemical products contracted 21.5 percent and 10.6 percent on-year to $17.9 billion and $18.3 billion, respectively, on the decline in global oil prices.

On the other hand, semiconductor exports increased 11 percent on-year to hit a record high of $58.3 billion for the January-May period, thanks to robust demand for high-value products, such as high bandwidth memory (HBM) and DDR5.

Shipments of vessels gained 12 percent to $11.4 billion, while those of wireless communication equipment added 11 percent on-year to $6.5 billion and computer exports rose 12 percent to $4.5 billion.

"We are facing extremely serious conditions surrounding our exports and economy due to uncertainties in the global political and economic landscape," First Vice Industry Minister Moon Shin-hak said, referring to the Trump administration's evolving tariff scheme and the Israel-Iran conflict.

"The government will put in all-out efforts to successfully conclude ongoing trade negotiations with the U.S. and devise creative and bold policies to improve our industrial structure and innovate our trade system," he added.

nyway@yna.co.kr
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