South Korea’s export growth continued last month, led by demand for semiconductors, boosting the country’s trade balance to the biggest surplus since 2020 and supporting optimism among policymakers for better-than-expected economic expansion this year.
Shipments that reflect working-day differences increased 9.2 percent from a year earlier, easing from 11.3 percent growth from April, data released by the South’s Korea Customs Service on Saturday said.
Overall imports decreased by 2 percent, while the country’s surplus increased to US$4.96 billion, the largest in 41 months.
Photo: Bloomberg
South Korea has seen gains in the trade balance for a full year, the South Korean Ministry of Trade, Industry and Energy said.
The country’s outbound shipments to China rose 8 percent from a year earlier, while exports to the US increased 15.6 percent, the ministry said.
South Korean industries are having to navigate geopolitical risks stemming from the rivalry between China and the US. China is the nation’s biggest trading partner, while the US provides security guarantees.
The Bank of Korea last month revised its forecast for economic growth sharply higher as export momentum remained robust on the back of demand for products such as semiconductors and automobiles. Chip sales have been particularly healthy, leading gains in overall sales overseas from late last year.
South Korean exports of chips jumped 54.5 percent from a year earlier last month, while those of displays climbed 15.8 percent.
Overseas shipments of solid-state drives used in computers rose 48.4 percent, the ministry said.
While semiconductor exports rose for a seventh month, the pace of increase moderated slightly from 56.1 percent in April.
South Korea and some of its neighbors in Asia occupy positions at the high end of the overall hierarchy of technology supply chains and are set to benefit further from rising demand for electronics needed to advance artificial intelligence and data processing in major economies such as the US.
“Recent data suggest the strength in Asian exports may still have some way to go,” Oxford Economics Ltd economist Sheana Yue (余惠悅) said. “This will, in large part, be due to the chip upcycle.”
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
Hon Hai Precision Industry Co (鴻海精密) on Tuesday confirmed a cyberattack targeting some of its North American facilities, but said the affected factories were gradually returning to normal. The company, known globally as Foxconn Technology Group (富士康科技集團), said that its cybersecurity team “activated the response mechanism and implemented operational measures to ensure the continuity of production and delivery.” “The affected factories are resuming normal production,” the company said in a statement. Hon Hai had previously described it as a “technical issue,” when news of the cyberattack first surfaced. The confirmation followed media reports of a large-scale information technology system incident that broke out at
RSS