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South Korea exports surge 39.7% in June on chip, car demand

South Korean exports marked a fourth consecutive month of double-digit growth in June, albeit at a reduced pace, propelled by solid economic recovery in major markets globally and continued strong demand for memory chips and cars.

South Korea exports surge 39.7% in June on chip, car demand

FILE PHOTO: A truck drives between shipping containers at a container terminal at Incheon port in Incheon, South Korea, May 26, 2016. REUTERS/Kim Hong-Ji

SEOUL: South Korean exports marked a fourth consecutive month of double-digit growth in June, albeit at a reduced pace, propelled by solid economic recovery in major markets globally and continued strong demand for memory chips and cars.

Exports surged 39.7 per cent in June versus the same month a year earlier, reaching the third-biggest value on record at US$54.80 billion, trade ministry data showed on Thursday. That beat the 33.6 per cent average of 17 economist estimates in a Reuters poll, and marked the eighth consecutive month of expansion.

Exports grew 45.6 per cent in May, the sharpest increase since August 1988.

The nation's monthly trade data is a closely watched as it is the first released among major exporting economies and so widely considered a bellwether for global trade.

Overseas sales of semiconductors, the country's top export, grew for the 12th month in a row, by 34.4 per cent, while those of cars and petrochemical products surged 62.5 per cent and 68.5 per cent respectively.

By destination, exports to China, the United States and the European Union soared 14.3 per cent and 51.9 per cent and 65.3 per cent each, while those to South Korea's six other major trading partners also increased.

Thursday's data also showed imports grew 40.7 per cent in June, beating forecasts for a 33 per cent jump. The trade surplus stood at US$4.44 billion, versus US$2.94 billion a month earlier.

Earlier this week, the finance ministry sharply upgraded its 2021 growth forecast to an 11-year high of 4.2 per cent, with an 18.5 per cent jump in exports towing the expansion.

Source: Reuters

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