May exports down 1.3% YoY…Buoyed by strong semiconductor performance

Exports to China and the United States both down by over 8%

Automobile exports recorded -4.4% but

Electric vehicle exports to the EU, semiconductor exports to Taiwan performed strongly

Agricultural, fisheries, and K-beauty products also played a key role

South Korea's export value in May recorded $57.27 billion, down 1.3% compared to the same period last year. Although Trump tariffs are becoming more prominent, it is analyzed that strong semiconductor demand helped the numbers hold steady.

On the 1st, the Ministry of Trade, Industry, and Energy announced that exports in May stood at $57.27 billion. Considering the number of working days, average daily exports slightly increased to $2.66 billion compared to the same period last year, marking the highest level this year.

In May, exports increased in 5 out of the country's 15 key export items.

Exports of semiconductors, the nation’s largest export item, grew as demand for high value-added products such as HBM and DDR5 increased, reaching $13.8 billion (+21.2%), the highest amount for any May on record. Exports of wireless communication devices saw a 3.9% increase to $1.3 billion as smartphones ($420 million, +30.0%) performed well. Computer (SSD) exports also turned positive, increasing 2.3% to $1.1 billion.

Bio-health exports ($1.4 billion, +4.5%) were driven by bio-pharmaceutical exports ($910 million, +13.7%). Ship exports also rose 4.3% YoY to $2.2 billion.

US tariffs take full effect

Automobile exports fell 4.4% YoY to $6.2 billion. Exports to the United States saw a significant decline due to tariff measures and the impact of new plant operations in Georgia, but increased exports of electric vehicles to the European Union (EU) and a sharp rise in used car exports ($700 million, +71.0%) contributed to more than $6 billion in monthly automobile exports for four consecutive months.

Exports of petroleum products and petrochemicals were $3.6 billion (-20.9%) and $3.2 billion (-20.8%), respectively. Following the inauguration of the Trump administration and the resulting low oil prices, prices for both categories plummeted, leading to sharp drops in export value.

Outside of the main items, exports of agricultural and marine products ($1.0 billion, +5.5%) and cosmetics ($1.0 billion, +9.3%) posted record highs for the month of May. Exports of electrical equipment ($1.3 billion) also edged up by +0.1%.

Exports to China and the United States both declined

Exports to China dropped 8.4% YoY to $10.4 billion due to decreased exports of semiconductors and petrochemicals, the country's largest export items. Exports to the United States decreased by 8.1% to $10.0 billion as automobile exports tumbled, continuing the downward trend observed in April.

Exports to ASEAN were $10.0 billion, down 1.3% despite double-digit growth in semiconductor exports, as exports of petroleum products and petrochemicals plummeted. Exports to the EU grew 4.0% to $6.0 billion, led by automobiles and semiconductors.

Aside from the top nine export markets, exports to Taiwan, a major destination for South Korean semiconductors, soared 49.6% YoY to $3.8 billion, hitting a record high for any May and boosting overall performance.

Imports in May totaled $50.33 billion, down 5.3%. As a result, the trade balance posted a surplus of $6.94 billion in May, up $2.05 billion YoY, and cumulative trade surplus for January–May reached $19.0 billion, an increase of $4.2 billion over the same period last year.

Ahn Deok-geun, Minister of Trade, Industry, and Energy, evaluated, "Thanks to strong exports in key items like semiconductors and ships, as well as robust K-consumer products such as agricultural and marine goods and cosmetics, the export decline is limited."

Kim Dae-hoon/Kim Ri-an Reporters