South Korea’s exports decreased for the 12th straight month in September, marking a 4.4% on-year decline to $54.66 billion, the ROK Ministry of Trade, Industry and Energy (MOTIE) reported. However, this decline was the smallest on-year drop this year, signaling a potential upswing in the near future. This optimism stems from the global semiconductor demand showing signs of recovery, with September recording the highest monthly export value for the year. Despite the overall decline in exports, South Korea posted a trade surplus of $3.7 billion in September, its largest in two years, due to a sharper drop in imports. The nation’s imports decreased 16.5% on-year to $50.96 billion, with energy imports, a significant necessity for the country, plunging 36%.

By sector, while semiconductor exports, a critical component of South Korea’s export portfolio, fell 13.6% on-year to $9.94 billion, global chip sales have been rebounding in recent months. Car exports saw a notable increase, rising 9.5% on-year to $5.23 billion and machinery sales globally surged 9.8% to $4.39 billion. However, the country’s shipments to its top trading partner, China, decreased 17.6% on-year to $11 billion due to a slowdown in the Chinese economy. In contrast, exports to the U.S. grew 8.5% to $10.04 billion and those to the European Union increased 6.5% to $5.76 billion. Industry minister Bang Moon-kyu emphasized the government’s commitment to bolstering export growth and providing comprehensive support.