South Korea’s June 1-20 exports up as US shipments rise despite tariffs

[SEOUL] South Korea’s exports for the first 20 days of June rose 8.3 per cent from a year earlier, after falling in May for the first time in four months, early data showed on Monday.

Exports of semiconductors rose 21.8 per cent, while cars and ships gained 9.2 per cent and 47.9 per cent, respectively, according to the customs agency. Steel products rose 1.6 per cent.

Shipments to the US rose 4.3 per cent, despite President Donald Trump’s sweeping tariffs, but those to China fell 1.0 per cent.

“Exports seem better than expected as tariffs are currently paused except the 10 per cent baseline duty applying to all countries,” said Park Sang Hyun, an economist at iM Securities.

“But, with the deadline set for next month, it is still early to make assessments,” Park said, also noting US consumer demand and geopolitical tensions in the Middle East as major factors.

South Korea’s chief trade envoy is visiting the US this week for senior and working-level trade talks, the first since President Lee Jae Myung took office on June 4 and two weeks ahead of the July 8 deadline set between Seoul and Washington for a trade package reducing tariffs.

Exports are expected to fall 0.6 per cent in the first half of the year and 3.8 per cent in the second half as demand for semiconductors slows, Korea International Trade Association said on Monday.

The country’s central bank also sees the impact of US tariffs starting to take effect from the third quarter. REUTERS