The South Korean Customs Service (KCS) said today that South Korea’s imports rose faster than exports in the first 20 days of April. With oil prices rising, there is a possibility that South Korea will post a trade deficit in April.
South Korea’s exports rose 16.9% year-on-year to $36.3 billion in the April 1-20 period, while imports increased 25.5% to $41.5 billion. This resulted in a trade deficit of $5.2 billion during the period.
If the trend continues, South Korea could post a trade deficit for the second month in a row in April after energy costs soared.
Meanwhile, South Korean exports remained strong, driven by demand for chips and petroleum products. In March, South Korean exports rose 18.2% year-on-year to reach a new record high of $63.48 billion, marking the 17th consecutive month of growth.
However, rising fuel prices caused South Korea’s imports to reach a record $66.2 billion in March. This increased South Korea’s trade deficit to $140 million.