Sharp Decline in South Korea's Early May Exports

The Korea Customs Service has reported a significant year-on-year decrease of 23.8% in export value for the first 10 days of May, totaling $12.83 billion. This marks the most substantial decline since the COVID-19 lockdowns in October 2020.

Trade Deficit and Working Days Impact

Imports also fell by 15.9% to $14.57 billion, leading to a trade deficit of $1.74 billion. The reduction in working days, due to holidays, has played a crucial role in these figures.

Item-wise Export Performance

While semiconductor exports saw a 14% increase, other sectors weren't as fortunate. Significant drops were noted in passenger cars (23.2%), petroleum products (36.2%), and steel products (41.2%), among others.

Global Market Reactions

Exports to major markets like China and the U.S. decreased by 20.1% and 30.4%, respectively. Other regions, including the EU, Japan, and India, also showed weak performance.

Government's Perspective: Officials suggest observing the full month's data for a clearer picture, considering the holiday impact on early May's statistics.