China’s import demand is crucial for sustaining South Korea’s export rebound
Despite South Korea experiencing double-digit growth in shipments to India and the US, goods destined for China declined by 2.4% from the previous year.
South Korea's export rebound faces a pivotal factor as China's import dynamics come into play, according to recent trade data from Seoul. The first 20 days of November saw a 2.2% increase in South Korean shipments abroad compared to the same period last year, signalling a continuation of the growth trend after a year-long slump. However, the rise was more modest than October's full-month increase of 5.1%, suggesting a potentially uneven path to a complete recovery.
Highlighting the significance of China's role in this recovery, the data reveals that if China had increased its purchases, the trade numbers would have been more favourable.
Despite South Korea experiencing double-digit growth in shipments to India and the US, goods destined for China declined by 2.4% from the previous year. China, despite its slowing economy, still holds the lion's share of Korean shipments at 21.4%, surpassing the US's 19.5%.
Source: Bloomberg. Data from the Korean Trade Ministry
South Korea exports mainly electrical and electronic equipment (31%), vehicles other than railway (11%), machinery and nuclear reactor (11%), mineral fuel, oils and distillate products (9.5%), and plastics (6%).