SEOUL- South Korea’s exports grew at their slowest rate in nearly a year in January, while a sharp rise in energy demand and prices pushed the country’s trade deficit to a record high.
Exports in January expanded 15.2 percent from a year earlier to $55.32 billion, trade ministry data showed on Tuesday, rising for a 15th consecutive month on solid demand for chips and petrochemicals.
However, the rate was down from an 18.3 percent rise in December and the slowest since February 2021. A Reuters’ poll of 10 economists had expected 15.5 percent growth.
January’s growth was led by a 24.2 percent jump in semiconductor sales, South Korea’s biggest export by value, while outbound shipments of petrochemicals, oil and steel products surged 40 percent, 88.4 percent and 50.1 percent, respectively.
By destination, exports to China, South Korea’s biggest trading partner, gained 13.1 percent, and those to the United States and European Union rose 1.6 percent and 13.3 percent.
Imports, meanwhile, jumped 35.5 percent in January to $60.21 billion, taking the trade deficit to a record $4.89 billion.
“The growth in imports outpacing that of exports due to a surge in the cost of imported crude oil, gas and coal is the main reason behind January’s deficit,” the trade ministry said.
Imports of crude oil, gas and coal cost $15.95 billion in January, more than double $6.89 billion a year ago.
“Given the risk factors such as a recent surge in raw material prices and supply chain instability due to geopolitical nerves, the trade condition this year is not favorable to our exports,” Minister Moon Sung-wook said.
The ministry plans to roll out active support measures for exporters to bring the trade balance back into the black, he said.
