The semiconductor market dragged down, South Korea's exports in the first half of 2023 may drop by 3.7%

According to media reports, South Korea's preliminary trade statistics for 2022 show a trade deficit of US$47.2 billion, the first time the country has experienced a deficit in the past 14 years.

In terms of major export items, semiconductors, which accounted for 20% of total exports, increased by only 1% to a total of US$129.2 billion, automobiles increased by 16% to US$54.1 billion, and displays fell by 1% to US$21.1 billion.

By country, exports to top trading partner China fell 4% to $155.8 billion, exports to the Association of Southeast Asian Nations rose 15% to $124.9 billion, while exports to the U.S. market rose 15% to $109.8 billion.

The Bank of Korea (BOK) predicts that South Korea's exports will decline by 3.7% in the first half of 2023, mainly due to the recent downturn in semiconductors, but may grow by 4.9% in the second half of the year and achieve a positive growth of 0.7% for the whole year.