EXPORTS REACH ALL-TIME HIGH

[Anchor Lead]

Korea’s exports recorded an all-time high in July. The outlook for the second half of the year is also bright thanks to the solid growth of major export items. The spread of COVID-19 variants, however, remains a major threat to the country’s exports.

[Pkg]

The second-quarter earnings of Samsung Electronics and SK Hynix exceeded expectations. Hyundai and Kia recorded the highest-ever sales and operating profit. Korea’s exports in July surged nearly 30 percent on-year, recording over 55.4 billion dollars, on the stellar performance of domestic companies. The monthly figure was the highest in 65 years. The nation’s exports as of July 2021 surpassed 350 billion dollars, posting an all-time high.

[Soundbite] Shin Yong-min(Trade Ministry official) : "As the sluggish demand recovers for multiple items simultaneously, the global trade including Korea began to rebound."

The quality of exports has also improved. Exports of memory chips surged nearly 40 percent on-year, driving overall exports. Exports of 15 major items such as petrochemicals and automobiles also rose. New growth items such as cosmetics and pre-packaged foods also contributed to the export boom. The government expects the trend to continue in the second half of the year, with the nation’s exports surpassing 600 billion dollars in 2021. However, the global spread of COVID-19 variants and low vaccination rates in developing nations could undermine Korea’s exports.

[Soundbite] Joo Won(Hyundai Economic Research Institute) : "Korea’s exports target mostly developing nations rather than major economies. They could be undermined by the poor economic growth in developing countries due to low vaccination rates and virus outbreaks."

Another risk factor is the rising prices of raw materials, which could present Korean exporters with challenges in the second half of this year.