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Exports to improve, backed by ship, chip shipments in Q3

June 19, 2024

South Korea’s exports are expected to improve in the third quarter, backed by positive conditions for shipbuilding and semiconductor companies, a trade body said Wednesday.

The Korea International Trade Association (KITA) said its quarterly Export Business Survey Index came to 108.4 for the July-September period next year, recorded above 100 for the second straight quarter.

A reading below 100 means pessimists outnumber optimists, while a reading above the benchmark means the opposite. The survey was conducted on 1,014 exporting companies.

KITA said it anticipates improved export conditions for high-value ships, such as liquefied natural gas and ammonia carriers. It also foresees a growth in chip exports thanks to a boom in the global artificial intelligence industry.

Additionally, exports of steel are expected to show a strong recovery compared with the previous quarter.

On the contrary, geopolitical tensions in the Middle East are expected to worsen the export conditions for petroleum products due to disruptions in the crude oil supply, KITA said.

Rising raw material prices and increased logistics costs were cited as the leading negative business factors for the surveyed firms.

This file photo from Nov. 1, 2023, shows a port in Busan, 320 kilometers southeast of Seoul, packed with shipping containers. (Yonhap)
This file photo from Nov. 1, 2023, shows a port in Busan, 320 kilometers southeast of Seoul, packed with shipping containers. (Yonhap)