South Korea’s exports maintained growth momentum last month as demand from China increased and semiconductor sales stayed resilient.
The value of shipments adjusted for working-day differences increased 4.3 percent from a year earlier last month, according to data released yesterday by the South Korean Ministry of Trade, Industry and Energy. That compared with a 3.7 percent rise initially reported for the full month of November.
Unadjusted exports rose 6.6 percent while overall imports increased by 3.3 percent, resulting in a trade surplus of US$6.5 billion.
Photo: Reuters
The up-tick offers some solace for a nation undergoing its biggest political upheaval in years. South Korean President Yoon Suk-yeol was impeached after shocking the nation by briefly declaring martial law on Dec. 3. South Korean Prime Minister Han Duck-soo was also impeached for refusing to quickly appoint judges to deliberate on Yoon’s impeachment. South Korean Minister of Finance Choi Sang-mok has stepped in as the second acting president.
The turmoil has sent the won to its lowest level since 2009, while South Korea’s stock markets also remain fragile. A Jeju Air plane crash on Sunday that killed all but two of 181 people on board might further dent consumer sentiment.
South Korea, which relies heavily on exports to drive its economic growth, also faces external challenges. US president-elect Donald Trump has promised an array of protectionist policies, including universal tariffs, as he prepares to return to the White House.
Bank of Korea Governor Rhee Chang-yong sees the economy growing this year less than the 1.9 percent forecast previously, and economists increasingly expect the central bank would go ahead with another cut this month as consumer and business confidence slump.
Weaker export momentum poses a threat to the won, and the nation’s semiconductor industry might experience slower demand this year after enjoying a boom from artificial intelligence development.
Chip exports increased 31.5 percent from a year earlier last month while shipments of cars fell 5.3 percent. Sales of wireless communication devices rose 16.1 percent, the trade ministry said.
Exports to China increased 8.6 percent, reversing from a contraction a month earlier, the ministry said. Shipments to the US rose 5.5 percent and exports to the EU advanced 15.1 percent.
For the year as a whole, South Korea’s exports rose 8.2 percent last year from a year earlier, the ministry said, adding that the trade surplus amounted to US$51.8 billion. Semiconductors, the biggest driver of exports, sold 43.9 percent more than in 2023, it said.
The outlook for this year is less bright. Exports are likely to grow 2.2 percent from a year earlier, while the trade surplus is set to reduce to US$48.7 billion, the Korea Development Institute said in a November forecast.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
RSS