According to the South Korean industry ministry, the country’s exports fell for the fifth consecutive month in February due to a global slowdown in the demand for semiconductors. The data compiled by the Ministry of Trade, Industry and Energy revealed that exports fell by 7.5 percent YoY to US$50.1 billion in February, with semiconductor chips – South Korea’s primary export item – falling by 42.5 percent due to weakened demand, including reduced chip prices.
On the other hand, imports rose by 3.6 percent YoY to $55.4 billion in February, resulting in South Korea’s trade deficit of $5.3 billion. The country has reported a trade deficit since April last year, marking the first time South Korea has experienced a 12-month trade deficit since 1997.
South Korea’s economy heavily relies on semiconductor exports, and the fall in global demand for semiconductors has significantly impacted the country’s trade performance. With no immediate solution to the weakened semiconductor market, South Korea’s government has implemented measures to help reduce the impact of the chip industry downturn on its economy.