[DiaryPoint Reporter Eom Ju-yong] South Korea’s cumulative exports from January through October reached $930 billion, bringing the country within sight of $1 trillion for the year. According to October trade figures released Nov. 1 by the Ministry of Trade, Industry and Energy, exports rose 60.6% from the same period a year earlier. With $70 billion left to reach the milestone, the ministry said it expects South Korea to cross the threshold in November.
Exports in October totaled $115.3 billion, up 93.7% from a year earlier. That was the second-highest monthly total on record, after September. Semiconductor exports surged 259.4% to $56.44 billion, while exports of goods outside semiconductors also rose 34%.
Cosmetics led the three sectors in growth
Cosmetics exports climbed 57.5% to $1.44 billion. Agricultural and fisheries products rose 11.6% to $1.11 billion, while biopharmaceutical and health products increased 30.2% to $1.53 billion. All three sectors recorded their highest October totals on record. Cosmetics had the fastest growth, while biopharmaceutical and health products had the largest export value.
The drivers varied by sector. The ministry said cosmetics exports rose broadly in the United States, China and the European Union. Noodles, beverages and sauces led gains in agricultural and fisheries products, while biopharmaceutical and health exports benefited from sales to a wider range of markets and increased volumes under multiyear contract manufacturing organization (CMO) agreements.
Strong exports do not mean lower prices at home
These figures do not mean cosmetics or food prices in South Korean stores will soon fall. Export figures track the value of goods sold overseas based on customs data, while domestic retail prices are also shaped by costs and distribution and sales conditions. Still, sustained overseas orders can support exporters’ production and expansion of their international distribution networks, making export data a useful indicator of business conditions in these industries.
It is also useful to distinguish growth rates from each sector’s share of total exports. Cosmetics, agricultural and fisheries products, and biopharmaceutical and health products together accounted for $4.08 billion in October, a portion of the month’s $115.3 billion in total exports. Semiconductor exports alone were about 14 times that combined figure, underscoring that semiconductors remain the main driver of the recent export surge.
The ministry said 18 of the 20 major export categories grew in October. The monthly figures and the January-to-October total point to a possible $1 trillion year, but whether South Korea reaches that mark will depend on export performance from November onward.