"Trade deficit" for 8 consecutive months... "first" since IMF crisis = Korea

South Korea's growth engine, exports, fell by 30% in the semiconductor and Chinese markets in November, recording negative growth for the second straight month. This is the first time since March-August 2020, when the COVID-19 virus infection was in its early stages in South Korea.

The trade balance has been in the red for the first time in 25 years since 1997, the time of the IMF crisis (currency crisis), as imports surged more than exports. This year's cumulative trade deficit surpassed $40 billion, the highest figure in 66 years since domestic trade statistics began in 1956.

According to South Korea's Ministry of Trade, Industry and Energy on December 1st, November's exports plummeted 14.0% from the same month last year to $51.91 billion. The value of exports in October decreased by 5.7% compared to the same month of the previous year, marking the first decrease in 24 months since October 2020 (-3.9%), and the value of exports decreased for the second consecutive month.

Looking at exports in November by item, semiconductors (-29.8%) and petrochemicals (-26.5%), which are mainstays, declined sharply due to the economic slowdown. Semiconductors are a major item that accounts for about 20% of all Korean exports.

By country, China (-25.5%), Japan (-17.8%), Central and South America (-19.1%), etc. The Chinese market, which is the largest export partner, has suffered greatly. China is the largest market, accounting for 25% of all exports.

The value of imports in November was 58.93 billion dollars, up 2.7% from the same month last year. The trade balance in November was a deficit of 7.01 billion dollars, and the deficit has continued for eight consecutive months since April this year. It is the first time in 25 years from January 1995 to May 1997 that the deficit has continued for more than eight months.