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Semiconductor exports fell sharply by 41% in April

Posted May. 02, 2023 08:04,   

Updated May. 02, 2023 08:04


Semiconductor exports fell sharply, and the impact is spreading to the ASEAN region, following China's lead. Last month, exports to ASEAN decreased by 26.3%, resulting in the United States replacing Vietnam as the country with the largest trade surplus this year. This decline in exports to ASEAN, which is a strategic market that can replace China, a huge market with 670 million people, could significantly burden the Korean economy.

According to the Ministry of Trade, Industry, and Energy on Monday, exports in April totaled $49.62 billion, representing a 14.2% decrease from the previous year. Monthly exports have been declining for seven consecutive months since October last year. In particular, semiconductor exports plummeted by 41.0% to $6.38 billion last month compared to a year ago. Consequently, exports to China and ASEAN, which have a high proportion of semiconductor exports, decreased by 26.5% and 26.3%, respectively, leading to a trade deficit of $2.27 billion.

However, there was an increase in exports to the U.S., mainly in automobiles, resulting in a trade surplus of $3.66 billion. The accumulated trade surplus from January to April was $10.86 billion, making the U.S. the largest trade surplus counterpart and surpassing Vietnam ($7.613 billion).

The size of the trade deficit has been gradually decreasing, from $12.52 billion in January to $5.3 billion, $4.63 billion, and $2.62 billion in February, March, and April, respectively.