South Korea’s trade deficit with China increasing rapidly

The Korea Customs Service announced on July 21 that South Korea’s exports and imports were US$37.245 billion and US$45.348 billion for the first 20 days of this month, respectively. South Korea is likely to post a trade deficit for the fourth consecutive month and its trade deficit for this year is US$18.458 billion.

In that 20-day period, its exports and imports increased 14.5 percent and 25.4 percent year on year, respectively. The latter was led by crude oil (up 107.5 percent), coal (up 148.9 percent) and gas (43.1 percent) imports. On the other hand, semiconductor manufacturing equipment, automobile and wireless communications device imports fell 10.3 percent, 17.6 percent and 19.5 percent, respectively.

South Korea’s trade deficit with China is increasing fast. The figure is US$1.539 billion this month whereas it was US$1.319 billion on June 1 to 20 and US$613 million on May 1 to 20.

The trade deficit for four months in a row is for the first time since the global financial crisis period of June to September 2008. In addition, South Korea’s monthly trade deficit with China is for the first time in about 28 years.

Source: BusinessKorea