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S. Korea's exports post 29.5% gain from June 1 to 20
South Korea's export momentum weakened on base effect, rising 29.5 percent in the first 20 days of the month from a year earlier, which is much less than the 45.6 percent jump for the full month of May.
Yoon Yeo-sam, an analyst at Meritz Securities in Seoul, said the slowing of exports momentum remains favorable enough to not disrupt the trajectory of economic growth while allowing the Bank of Korea to keep shifting its focus to financial stability.
The Bank of Korea identified US fiscal stimulus, rising global ship sales, and increased demand from overseas consumers as factors that would buoy exports for the rest of the year.
Shipments to the US, the EU, and Japan exhibited hefty gains, but a slower pace of export gains in China suggests that shipment increases to other economies may also moderate as recoveries enter a post-pandemic phase.
Overseas shipments to the US surged 41.3 percent, those to the EU soared 48.8percent, and those to Japan gained 33 percent.
Meanwhile, exports to China jumped 7.9 percent on-year from June 1 to 20, with semiconductor shipments increasing 28.5 percent.
Shipments of cars increased the most with 62.2 percent, while oil products jumped 58.6 percent.
Exports of wireless communications devices went up 15.8 percent, but ship exports dropped 27.7 percent.
South Korea’s imports rose 29.1 percent in the said period.
The country's trade figures are deemed a timely assessment of global commerce health as its manufacturers are positioned across supply chains.