South Korea June Trade Surplus Smallest in 4 Months
South Korea’s trade surplus narrowed to USD 6.3 billion in June of 2018 from USD 10.7 billion in the same month of the preceding year, as exports fell while imports rose, preliminary data showed.
7/1/2018 2:27:46 AM
In June, outbound shipments edged down by 0.1 percent year-on-year to USD 51.23 billion, due to high base effect and shorter working days, missing market consensus of a 0.4 percent growth and after a 13.5 percent gain in the prior month. Sales declined for vehicles (-9.9 percent), flat panel displays (-10.5 percent), and consumer electronics (-21.6 percent). By contrast, outbound shipment went up for semiconductors (39 percent), petrochemical products (17.6 percent).
Among major trading partners, exports to the ASEAN countries contracted 1.3 percent, and Middle East (-10.4 percent), but soared to China (29.8 percent), followed by those to the US (7.6 percent).
Inbound shipments increased by 10.7 percent to USD 44.91 billion, following a 12.6 percent rise in May, below markets consensus of a 11.4 percent growth.
Considering the first six months of the year, the trade surplus was USD 32.8 billion, much smaller than a USD 44.9 billion surplus in the same period the preceding year.
For 2018, exports are expected to grew by 4 percent amid escalating trade tension between China and the United States.