50868
Exports fell 5.9% on-year while imports slipped 2.3%.
Exports fell 5.9% on-year while imports slipped 2.3%.

South Korea Trade Declines

South Korea Trade Declines

South Korean exports in September fell, as expected, after posting the first rise in 20 months in August, as slightly fewer working days and a strike at the biggest automaker hit shipments, data showed on Saturday.
Exports fell 5.9% on-year to $40.86 billion in September while imports slipped 2.3% to $33.76 billion, trade ministry data showed, resulting in a trade surplus of $7.11 billion in September, up from a revised $5.11 billion surplus in August, Reuters reported.
In August, exports and imports rose 2.6% and 0.7%, respectively.
The rebound in August was widely expected not to continue as policymakers expressed concerns over major strikes at Hyundai Motor. Its labor union staged its first full nationwide strike in 12 years on Monday over stalled wage talks, putting the automaker’s earnings and sales targets at risk.
The strikes, ongoing since July, have accumulated losses of nearly 2.5 billion won ($2.27 million), the finance minister said on Wednesday.
“Although it’s a fall, trade data today isn’t a disappointment given that strikes at Hyundai and shipment disruptions from the collapse of Hanjin Shipping must have been dragging overall overseas sales,” Moon Jung-hui, a Seoul-based analyst at KB Investment & Securities said after the data was released.
“Sectors other than auto and shipping seem to have fared alright. The Bank of Korea may not rush to cut rates again this year. They are likely to maintain their wait-and-see mode since recovery is very weak,” he said.
The trade ministry also said the recent global recall of Note 7 smartphones by Samsung Electronics, due to faulty batteries causing some of the phones to catch fire, had also affected September trade numbers.
Shipments to China fell 9.1%, while those to the US and the EU slumped 6.1% and 14.5%, respectively.
September this year had 0.5 fewer working days compared to the same month in 2015.
While the economy is improving on the back of domestic demand, the prolonged contraction in exports is a source of concern as policymakers wait the effects of expansionary fiscal and monetary policies.
Other challenges the economy faces include the ongoing corporate restructuring and the enforcement of the anti-graft law, which restricts meals and gifts public officials journalists can accept.
Economists polled by Reuters had expected a 4.1% drop in exports and a 2.3% fall in imports.
The average export value per working day was $1.95 billion in September, compared to $1.67 billion in August, a three-month high.

Short URL : https://goo.gl/K5L1AY
  1. https://goo.gl/P0quVQ
  • https://goo.gl/JMp8jV
  • https://goo.gl/AgAa9N
  • https://goo.gl/tOjlfU
  • https://goo.gl/wnWhPx

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus