Korea’s Exports Rise Most Since 2018 Amid Global Recovery

(Bloomberg) -- South Korea’s exports rose the most in more than two years amid continued robust gains in manufacturing activity, signaling strength in global demand and improved confidence over the outlook as more countries start vaccination programs.

Overseas shipments increased 16.6% from a year earlier in March, the trade ministry said Thursday, matching economists’ forecasts. Korea’s exports to the U.S. and the European Union gained strongly with values reaching some of the highest levels on record. Sales to China also racked up further solid increases.

A separate report from IHS Markit showed a purchasing managers’ index for Korean manufacturing held at 55.3, unchanged from February, which was its strongest reading since 2010.

The improving trade momentum offers further evidence that the global recovery is on track, underpinning a rebound in Korea’s export-reliant economy. The country has seen a wave of growth forecast upgrades in recent weeks, spurred by its export performance and signs of a consumption pickup.

Chips and automobiles have been leading the export rally as overseas consumer demand returns and investment improves. Still, surging coronavirus infections in some parts of the world are headwinds to trade, with countries like France imposing stronger restrictions to rein in the spread.

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• Exports to China jumped 26%, while those to the U.S. rose 9.2%. Shipments to EU surged 36.6%.
• Overall shipments of semiconductors rose 8.6%, while automobiles gained 15.3%. Steel products rose 12.8% and petrochemicals surged 48.5%. Park from Nomura said the jump in steel and oil products reflects the recent rise in the prices of commodities and energy.
• Overall imports rose 18.8% from a year earlier, leaving a trade surplus of $4.17 billion.

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