Korean Media: South Korea's Exports Face Negative Growth, Prospects for the Second Half of the Year Are Even More Dismal!
On July 18, Korean media outlet "Chosun Ilbo" published an article stating that according to statistics from the Korea Trade Association, exports to countries such as Germany and France in South Korea declined in the first four months of this year. In sharp contrast to the strong growth in exports to countries like the United States (5.1%), China (6.4%), and Japan (6.0%), South Korea's exports fell by 0.8%. The outlook for South Korea's exports in the second half of the year is even more bleak, with nine out of 13 major categories expected to see a decline. As a result, it is expected that the export growth rate in the second half of the year will drop to -3.8%, and the annual export growth rate is expected to fall by 2.2%.
Exports, which support South Korea's economy, are inevitably worrying. Recent declines in exports are not temporary phenomena but continuous declines, with a severe situation. Especially, due to various industrial restrictions such as the 52-hour work system, the competitiveness of South Korean exported products is declining. In key export sectors such as automobiles, semiconductors, and smartphones, the technological gap between South Korea and China has been significantly reduced. Data from the Korea Institute of Science and Technology Evaluation and Planning in February showed that South Korea lags behind China in several semiconductor technologies, including integrated circuits and resistive memory. Therefore, China can procure products through its own production instead of importing from South Korea. Due to China's "rise in the semiconductor industry," exports of semiconductors from South Korea to China decreased by 9.7% in the first five months of this year.
External variables such as tariffs also pose a fatal threat to South Korea's exports. This year, the United States has imposed tariffs on goods such as cars (25%) and steel (50%). Worse still, recent conflicts in the Middle East have caused oil prices to surge and instability in security, worsening export conditions.
As a fundamental solution, there is an urgent need for policy support to enhance the capabilities of South Korean export enterprises. Additionally, efforts should be actively made to diversify export regions, avoiding over-reliance on specific countries such as the United States and China.
Original: https://www.toutiao.com/article/1837987163159561/
Statement: The views expressed in this article are those of the author.