Korea’s monthly exports exceed $120 billion for first time in September

A container ship in the Arctic Sea. (courtesy of the Ministry of Oceans and Fisheries)

Korea’s monthly exports topped US$120 billion for the first time in September, while the country’s trade surplus neared US$50 billion.

Cumulative exports through September reached US$814.5 billion. At the current pace, annual exports are expected to surpass US$1 trillion by mid-November.

That would make Korea only the fourth country to reach that milestone after Germany, the US and China.

Korea’s Ministry of Trade, Industry and Resources said Thursday that exports totaled US$120.94 billion in September, up 83.5% from the same month last year. The ministry said this was the first time monthly exports had exceeded US$120 billion. The previous monthly record was US$102 billion, set in June.

Average daily exports, adjusted for the number of working days, also surpassed US$5 billion for the first time, reaching US$5.63 billion.

Exports totaled a record US$814.5 billion in the first nine months of the year, more than US$100 billion higher than the US$709.3 billion recorded during the same period last year.

Semiconductor exports surged 263%, while exports of non-semiconductor products rose 23%. Chip exports alone reached US$60.3 billion in September, US$13.6 billion more than the previous record of US$46.7 billion set in August. The increase was attributed to continued gains in average fixed prices for memory chips.

September also marked the first time monthly semiconductor exports exceeded US$60 billion.

Imports rose 26% from a year earlier to US$71.09 billion, resulting in a trade surplus of US$49.85 billion. The surplus was US$40.37 billion larger than a year earlier and marked the first time South Korea’s monthly trade surplus had exceeded US$40 billion.

The cumulative trade surplus for January through September stood at US$252.5 billion, an increase of US$202.7 billion from the same period last year.

Trade and Industry Minister Kim Jung-kwan said September exports had exceeded US$120 billion for the first time and that cumulative exports had surpassed US$800 billion, allowing the country to overtake last year’s record of US$709.3 billion well ahead of schedule.

“Annual exports of US$1 trillion are now within reach,” Kim said, while cautioning that the intensification of global protectionism and tensions in the Middle East remain significant variables for exports.

He said the government would maintain high-level dialogue with trade officials in major economies and closely monitor developments in export restrictions. It would also take proactive steps to mitigate the impact of unexpected external risks and maintain export momentum through the fourth quarter.