South Korean chip exports rose for the first time in more than a year

Written by the editorial board of Portal Portuario / Reuters

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Exports from South Korea They beat expectations and accelerated in November as overseas chip sales rose for the first time in 16 months, adding to evidence that global demand will strengthen.

Shipments from Asia’s fourth-largest economy grew 7.8% year-on-year to $55.8 billion, accelerating from a 5.1% rise in the previous month to record the fastest growth since July 2022.

Chip packaging broke 15 months of declines and rose 12.9%, a sign that falling demand for semiconductors may bottom out.

“Exports are certainly recovering thanks to a recovery in demand for chips. Car sales are also strong, so we expect total exports to grow by 8% next year,” he said. Lee Da-eun, economist at Daishin Securities.

“However, the momentum behind chip sales is not as strong as we expected, and there are also downside risks due to the tepid recovery of the Chinese economy,” he added.

South Korean authorities hope a rebound in demand for chips will boost the country’s growth, as South Korea’s restrictive interest rates restrict domestic demand.

On Thursday, November 30, the Bank of Korea left its monetary policy unchanged and indicated that it may need to keep interest rates high for longer to avoid persistent inflation risks.

By destination, exports to the United States increased by 24.7% to record gains for the fourth straight month, but shipments to China, its largest trading partner, fell by 0.2%.

Imports fell 11.6% to $52 billion, compared to losses of 9.7% in the previous month and the 8.6% that economists had expected.

As a result, the country recorded a trade surplus of $3.8 billion in November. This was the largest monthly surplus since September 2021.

Exports of 12 of the country’s top 15 export commodities rose in November, including a 38.5% increase in ship exports. Car exports rose by 21.5%, continuing their gains for the seventeenth consecutive month.