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Bloomberg
South Korea’s early trade data showed an export-slump persisting in December in the face of stiffening global economic headwinds.
Shipments decreased 8.8% in the first 20 days of the month compared with a year earlier, the customs office said on Wednesday. That compares with a 14% drop for the full month of November. The country posted a $6.43 billion trade deficit in the period. Average shipments that exclude working-day differences also fell 8.8%. Chip sales declined 24.3% and exports to China tumbled 26.6%.
Korean exports have begun to drop in recent months as the world economy enters a slowdown under pressure from Russia’s continuing war in Ukraine, fallout from China’s lockdowns and global monetary policy tightening.
A downturn in memory chip demand is exacerbating trade weakness, prompting chipmakers and other industrial giants to recalibrate manufacturing plans. Weakening exports, rising commodity prices and sliding investor sentiment are among headwinds facing Korea next year.