Seoul - Saba:
South Korean exports fell 1.3% in May compared to the same period last year, ending a three-month streak of continuous growth, according to government data released Sunday.
Data showed that exports reached $57.3 billion in May, while imports contracted 5.3% year-on-year to $50.3 billion, resulting in a trade surplus of $6.94 billion.
The Ministry of Trade, Industry and Energy indicated that the decline in exports was driven by an 8.1% decline in shipments to the United States to $10 billion, amid the negative impact of the Trump administration's tariff policies, particularly the 25% tariff on auto imports, which has weakened the performance of this vital sector.
Exports to China, South Korea's largest trading partner, also declined 8.4% year-on-year to $10.4 billion, impacted by declining demand for semiconductors and petrochemical products. Exports to ASEAN countries saw a 1.3% decline to $10 billion.
In contrast, Korean exports to the European Union grew 4% to $6 billion, driven by increased demand for automobiles and semiconductors, marking the third consecutive month of growth.
Commenting on the data, South Korean Industry Minister Ahn Duk-kyun said, "It is clear that the US tariffs are taking a toll on the global economy and South Korean exports, as evidenced by the decline in exports to both the United States and China."
The minister added that the sharp drop in global oil prices, which reached $60 per barrel in May, contributed to a more than 20% year-on-year decline in exports of petroleum and petrochemical products, a major factor in the overall decline in Korean exports.