Export Decline Amidst Tariff Negotiations

Exports from South Korea to major economies including the United States and China have seen a notable decline in the first ten days of August. The Korea Customs Service reported a 4.3% drop in export value, totaling $14.7 billion, compared to the same period last year. This decrease is largely attributed to one fewer working day this year.

Daily Export Average Shows Promise

Despite the overall decline, the daily average export value increased by 9.3%, reaching $2.1 billion. Government officials remain optimistic, suggesting that the export growth trend may persist. "Exports tend to concentrate towards the month's end," a government official noted, emphasizing the need for a full-month analysis.

Semiconductor Sector Shines

Semiconductor exports bucked the trend with a 12% increase, amounting to $3.897 billion and constituting 26.3% of total exports. "Semiconductors are being shipped as orders come in, with no inventory buildup," explained an official, highlighting strong demand and higher selling prices as key drivers.

Uncertainties Loom Despite Tariff Settlement

While the Korea-US tariff negotiations have concluded, uncertainties remain. Statements about potential 100% tariffs on semiconductors and undisclosed plans for automobile tariff adjustments add to the trade tension. Meanwhile, exports of ships and passenger cars rose, whereas petroleum products and wireless communication devices saw declines.