SEOUL (XINHUA) – South Korea logged a trade deficit for the second successive year last year owing to weaker global demand, caused by higher interest rates in major economies, government data showed yesterday.
The trade deficit amounted to USD9.97 billion in 2023 after recording USD47.78 billion in the previous year, according to the Ministry of Trade, Industry and Energy.
Export, which accounts for about half of the export-driven economy, shrank 7.4 per cent from a year earlier to USD632.69 billion in 2023, marking the first downturn in three years since 2020.
It was attributed to high interest rates in major economies and the global economic slump.
Import retreated 12.1 per cent to USD642.67 billion last year on the back of lower commodity prices.
The trade balance posted a deficit of USD26.3 billion in the first half, but it turned around with a surplus of USD16.33 billion in the second half amid the export rebound.
The outbound shipment reduced 12.8 per cent in the first quarter, 12 per cent in the second quarter and 9.7 per cent in the third quarter, before rebounding 5.9 per cent in the fourth quarter.
Semiconductor export tumbled 23.7 per cent over the year to USD98.63 billion in 2023, but automotive shipment surged 31.1 per cent to hit a new yearly high of USD70.87 billion on robust demand for eco-friendly vehicles.
Machinery shipment rose 4.6 per cent to USD53.46 billion on solid demand from the United States (US), the European Union (EU) and the ASEAN.
Export for oil products and petrochemicals declined in double digits to USD52.16 billion and USD45.68 billion each due to cheaper global crude oil.
Shipment for steel products and auto parts dwindled in single digit to USD35.21 billion and USD22.96 billion, while those for display panels and mobile devices shrank in double figures to USD18.59 billion and USD15.47 billion, respectively.
Export to the US and the EU gained to reach new highs of USD115.72 billion and USD68.26 billion each, but shipment to ASEAN diminished 12.5 per cent to USD109.24 billion last year.
Shipment to Japan and Latin American countries fell in single digit to USD29.06 billion and USD24.62 billion, but export to the Middle East advanced to USD18.81 billion.