South Korea’s Exports Take a Hit: What’s Behind the 2.2% Drop?

South Korea’s exports fell 2.2 percent year-on-year in the first 20 days of July, according to data released Monday. The decline is partly attributed to weaker shipments to the United States and China, amid ongoing uncertainties surrounding U.S. tariff policies.

The Korea Customs Service reported that outbound shipments totaled $36.1 billion from July 1-20, down from $36.9 billion during the same period last year.

Imports also decreased, dropping 4.3 percent year-on-year to $35.6 billion, resulting in a trade surplus of $500 million.

Despite the overall decline, the daily average export volume actually rose 4.1 percent compared to the previous year. The agency noted that there were 15.5 working days during this period, compared to 16.5 days in 2024.

Exports to the United States fell 2.1 percent year-on-year to $6.42 billion, impacted by ongoing tariff measures implemented during the Trump administration.

Shipments to China, South Korea’s largest trading partner, decreased 5.9 percent year-on-year to $6.88 billion.

The customs agency attributed the overall decline to both fewer working days and increased uncertainty regarding U.S. trade policy.

Breaking down the exports by sector, semiconductor shipments surged 16.5 percent from a year earlier to $7.89 billion, while automobile exports increased 3.9 percent to $3.63 billion.

In contrast, exports of petroleum products plummeted 17.5 percent year-on-year to $2.52 billion.

Despite the recent dip, June saw exports rise 4.3 percent year-on-year to $59.8 billion, marking the highest figure ever recorded for the month of June. This increase was largely driven by strong global demand for semiconductors, according to separate government data. (Yonhap)