SEOUL: South Korea’s export slump eased in April, offering a sign that weakness in global demand may be starting to turn a corner.
Shipments adjusted for working-day differences fell 10.4% from a year earlier, the smallest decline since December, according to figures released by the customs office.
Exports to Europe rose and the drop in shipments to China narrowed, signalling the possibility of a turnaround in trade momentum, though tech exports continued to disappoint.
South Korean exports serve as a barometer of international trade as the nation sells items such as chips, displays and refined oil, which straddle supply lines.
The country is home to some of the world’s biggest semiconductor and smartphone makers including Samsung Electronics Co and SK Hynix Inc, whose dismal first-quarter earnings highlighted ongoing struggles in the global technology sector.
The release showed that headline exports fell 14.2%, exceeding economists’ expectations for a 12.2% decline, with the figure dragged down by one fewer working day in the month compared with April a year earlier.
Overall imports fell 13.3%, resulting in a trade deficit of US$2.62bil (RM11.7bil), the smallest shortfall in 10 months.
Trade is a key component of South Korea’s economy as the country relies heavily on global commerce to generate growth.
The economy grew a marginal 0.3% in the first three months of the year from the prior quarter, avoiding a technical recession but underscoring the hit to exports.
The won has also been a victim of weak trade. The South Korean currency has fallen more than 5% against the dollar this year, lagging far behind all its Asian peers. — Bloomberg
