South Korea Dec exports up for third month but at slower pace

Daewoo Shipbuilding & Marine Engineering’s shipyard is seen in Geoje, South Korea, May 25, 2016. REUTERS/Staff /File photo

SEOUL  – South Korea’s exports rose for a third month in December but at a slower pace as weaker demand for Korean goods in China offset robust global sales for semiconductors, data showed on Monday.

Exports by Asia’s fourth largest economy gained 5.1 percent to $57.66 billion in December, slowing from a rise of 7.7 percent in November and also below 6.6 percent gain seen in Reuters poll of economists.

Export data out of Asia’s fourth largest economy is a closely watched indicator to gauge momentum for global trade.

Policymakers are pinning hope on recovering exports for an estimated 2.1 percent of economic expansion in 2024 as high borrowing costs and sticky inflation keep consumer spending sluggish.

Chip exports turned a corner in November, rising for the first time in 16 months as slump in semiconductor demand began to ease.

READ: S. Korea exports snap year-long downturn on strong US demand

In December, chip exports surged 21.8 percent year-on-year after a jump of 12.9 percent a month earlier.

Exports to China declined 2.9 percent on year.

Imports declined 10.8 percent in December on-year, better than a 11.4-percent of drop seen in the poll and easing after a 11.6-percent of drop in November.

That took the preliminary trade surplus for December to $4.48 billion.

READ: South Korea inflation eased for second month in December

For the whole 2023, exports declined 7.4 percent as restrictive monetary policies in many countries and a slowing Chinese economy weakened demand for Korean goods, trade ministry said.