S. Korean exports up for 5th month in Oct on robust chip demand

Seoul, Nov 1 (IANS) South Korea's exports grew 3.6 per cent from a year earlier in October, rising for a fifth consecutive month, despite a slide in shipments to the United States, thanks to strong demand for semiconductors, government data showed on Saturday.

Outbound shipments came to $59.57 billion last month, according to data compiled by the Ministry of Trade, Industry and Resources. It marked the fifth consecutive month since June the country's monthly exports posted an on-year gain, reports Yonhap news agency.

Imports decreased 1.5 percent on-year to $53.52 billion, resulting in a trade surplus of $6.06 billion.

Industry Minister Kim Jung-kwan said exports continued to increase thanks to strong performance by the semiconductor and ship sectors, noting that the trade deal between South Korea and the U.S. reached earlier this week will help clear trade uncertainties.

On Wednesday, President Lee Jae Myung and U.S. President Donald Trump agreed on the details of the trade deal, namely the structure of Seoul's US$350 billion investment pledge and tariffs on autos, during their summit on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit held in the southeastern city of Gyeongju.

By sector, semiconductor exports jumped 25.4 percent on-year to reach $15.73 billion, the highest for any October, as memory prices continued to increase on the back of high demand for high-value semiconductors, such as high-bandwidth memory and DDR5.

It marked the eighth consecutive month Korea's chip exports posted on-year growth. Ship exports, including offshore plants, surged 131.2 percent to $4.69 billion, also rising for the eighth consecutive month.

Shipments of petroleum products added 12.7 percent to $3.83 billion, while exports of computers went up 1.7 percent to $980 million.

Exports of most other items, however, declined due to fewer working days in October from the extended Chuseok holiday that fell in the month.

Auto exports dropped 10.5 percent to $5.55 billion, secondary battery exports dipped 14 percent to $540 million, and steel exports shrank 21.5 percent to $2.25 billion.

By destination, exports to the U.S. slid 16.2 percent on-year to $8.71 billion in October as auto, auto parts and steel shipments decreased due to tariff effects.

Exports to China contracted 5.1 percent to $11.55 billion, while shipments to the Association of Southeast Asian Nations (ASEAN) pulled back 6.5 percent to $9.4 billion.

Shipments to the European Union and India also went down 2 percent and 1.2 percent to $5.19 billion and $1.49 billion, respectively.

On the other hand, exports to Latin America soared 99 percent to an all-time high of $4.71 billion, led by sales of offshore plants.

Exports to the Commonwealth of Independent States (CIS), which includes Russia, gained 34.4 percent to $1.34 billion, rising for the eighth consecutive month.

Shipments to Taiwan jumped 46 percent to $5.15 billion, the highest for any October, backed by strong semiconductor demand.

—IANS

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