Korea - exports to China fall for 13th straight month in July: ARIRANG NEWS

ARIRANG NEWS

Published on Aug 16, 2016

대중국 수출부진 끝이 안보인다…13개월 연속 감소

The prospects for positive growth in Korea's export market are fading,... as the global economy has yet to pick up steam, and that includes China -- Korea's largest trading partner.

Analysts say Seoul may need to review its strategy.

Kim Min-ji reports. 

Korea's exports have fallen every month for over a year and a half now,... and there had been hopes of a recovery in the second half of the year.

But with the slow growth in the global economy,... especially China,... the prospects for a turnaround are dimming.

"China accounts for about a quarter of Korea's exports, which is an important factor determining whether Korea's outbound shipments can improve. Exports to China have fallen, so it depends on how much it can pick up."

According to the Korea International Trade Association,... Korea's exports to China came to 10-point-1 billion U.S. dollars in July,... down 9-point-4 percent from a year ago.

That extends the country's downward streak for a record 13 straight months. 

However, in a glint of light,... the pace of decline slowed from the previous month. 

Imports also shrank over 8 percent to just over seven billion dollars during the same period,... resulting in a trade surplus of about 3-point-1 billion dollars.

Exports of key items, such as semiconductors and flat panel displays,... led the decline.

Semiconductors, Korea's number one export item to China,... fell over 14 percent from the same period last year,... while display panels fell more than 19 percent.

But petroleum products spiked 35 percent,... while auto parts also jumped nearly 13 percent.

"Until now, growth has been centered around exports of intermediary goods. But Korea now needs to focus on consumer goods... and ramp up investment in areas it is good at,... such as food products, cosmetics and cultural content,... and open new markets."

Another option for Korea is to diversify its export partners and reduce its dependence on China. One country where analysts see potential is Vietnam,... which has risen as Korea's third largest export partner,... thanks to a free trade deal that took effect last year,... and as it is a production base for many companies.

However, experts say that... at the end of the day,... for a tangible recovery,... it's all down to how soon the global economy picks up steam, which will in turn drive up the demand for exports.

Kim Min-ji, Arirang News.