Trade surplus falls in July

The trade surplus has drastically fallen. Although, exports posted a record performance in July, imports rose by a staggering volume.

Export/import trends (tentative figures) announced by MOCIE for July showed exports increased by 23.6% y.o.y. to US$ 14.524 billion. This is the greatest performance for the month of July since 1997 (US$ 11.8 billion). Record-breaking monthly export figures have been posted for 7 consecutive months. Imports soared by 40.1% to record US$ 13.75 billion for the month of July.

As a result, a trade surplus of US$ 823 million was recorded in July, substantially lower than June`s US$ 2.1 billion figure. The double-digit trade surplus tandem posted in June and July came to a close. Exports from January to July came to US$ 97.363 billion while imports added up to US$ 92.295 billion, giving an aggregate trade surplus of US$ 5.68 billion.

According to MOCIE, robust export performances by the semiconductor, petrochemical, computer and general machinery industries -- owing to the rise in semiconductor, naphtha and petrochemical raw material prices -- made the record export figures in July possible.

Nonetheless, the reduced surplus was attributed to lagging shipbuilding sector exports and increased petroleum prices. The advanced purchase of petroleum by local refining companies facing the increase in petroleum import prices also contributed to the boost in July imports.

On one hand, the trade deficit with Japan increased to US$ 6.96 billion for the period of January to July 20th due to heightened imports of electronic components, machinery and capital goods.

MOCIE remarked that at this rate the trade deficit with Japan would exceed last year`s US$ 8.28 billion.