South Korea’s trade deficit hit a new record high last year due to faster growth in import than export, triggered by higher global energy prices, government data showed Sunday, Trend reports citing Xinhua.
Trade deficit came in at 47.2 billion U.S. dollars in 2022, more than doubling the previous high of 20.6 billion dollars tallied in 1996, according to the Ministry of Trade, Industry and Energy.
Export grew 6.1 percent over the year to reach a fresh yearly high of 683.9 billion dollars in 2022, but import soared at a faster pace of 18.9 percent to 731.2 billion dollars.
The rapid import increase was driven by geopolitical risks in Europe that boosted global energy costs.
Import of the country’s three major energy sources, including crude oil, natural gas and coal, stood at 190.8 billion dollars in 2022, accounting for 26.1 percent of the total import.
The outbound shipment kept a record-breaking trend for the second successive year in 2022, but the export turned downward in the fourth quarter as rapid interest rate hikes in major economies fueled worry about global economic downturn.
Semiconductor export added 1.0 percent to hit a new high of 129.23 billion dollars last year despite chip price falls in the second half of last year.
Automotive shipment jumped 16.4 percent to 54.1 billion dollars on the eased supply disruptions of chips to make cars and robust demand for eco-friendly vehicles.
Oil products shipment surged 65.3 percent to 63.02 billion dollars due to expensive crude oil, and secondary battery export expanded 15.2 percent to 9.99 billion dollars on stronger demand for electric vehicles.
Shipment for general machinery, steel and auto parts increased in single digits to 51.13 billion dollars, 38.46 billion dollars and 23.32 billion dollars respectively.
Export for petrochemicals, display panels, mobile devices, computers and home appliances declined to 54.29 billion dollars, 21.15 billion dollars, 17.24 billion dollars, 15.96 billion dollars and 8.06 billion dollars each.
Shipment to the Association of Southeast Asian Nations (ASEAN) advanced 14.8 percent to reach a record high of 124.95 billion dollars in 2022 owing to solid demand for locally-made chips, display panels and oil products.
Those to the United States and the European Union (EU) also recorded new highs of 109.82 billion dollars and 68.13 billion dollars each on higher demand for eco-friendly cars and oil products.
In December alone, export diminished 9.5 percent from a year earlier to 54.99 billion dollars, continuing to decrease for the third consecutive month.
Import shrank 2.4 percent to 59.68 billion dollars in December, sending the trade deficit to 4.69 billion dollars. The trade balance stayed in red for the ninth straight month.
Export for chips, display panels, mobile devices, home appliances, petrochemicals, steel and textile product all went down in double figures last month.
Shipment to the United States, the EU and the Middle East rose in single digits last month, but those to the ASEAN and Japan declined in double figures.
Import for the country’s three key energy sources spiked 27.7 percent from a year earlier to 16.75 billion dollars in December.
Source: TREND News Agency