South Korea's export engine experienced a significant slowdown in the first ten days of October, with overseas shipments declining by nearly 8% compared to the same period last year. The downturn reflects the combined impact of fewer working days during the Chuseok holiday season and ongoing global economic headwinds.
Key Export Figures Reveal Mixed Performance
According to data released by Korea Customs Service, the country's exports totaled $11.79 billion during October 1-10, marking a 7.8% decrease from the previous year. The daily average export value, which accounts for the fewer working days, showed a more modest decline of 4.6%, indicating that the holiday period significantly affected overall performance.
Sector-Wise Performance Shows Diverging Trends
The export data revealed contrasting fortunes across different industries:
- Automobile exports accelerated with an impressive 15.6% year-on-year increase
- Semiconductor shipments continued to struggle, declining by 9.5% despite recent optimism about recovery
- Precision instrument exports fell sharply by 28.8%
- Petroleum products dropped by 12.3%
- Automobile parts decreased by 7.8%
Import Picture and Trade Balance
South Korea's imports also contracted during the same period, falling 13.6% to $14.12 billion. This resulted in a trade deficit of approximately $2.33 billion for the first ten days of October, continuing the pattern of trade shortfalls that has persisted since early 2022.
Regional Trade Dynamics
The country's trade relationships showed varying performance across key markets:
- Exports to the United States declined by 6.8%
- Shipments to Vietnam decreased by 8.6%
- European Union exports fell by 12.9%
- Japan-bound exports dropped significantly by 23.3%
The Chuseok holiday, Korea's major harvest festival celebration, typically results in reduced business activity as many workers take time off to celebrate with family. This year's timing created fewer working days in the early October period compared to last year, amplifying the export decline.
Market analysts are closely watching whether the export slowdown represents a temporary holiday effect or signals a more sustained downturn amid global economic uncertainty and persistent inflation pressures in key markets.
