South Korea sees sharp export rise as global buyers stockpile chips ahead of potential US tariffs
Trump suspended 25-per cent levies on imports from South Korea — among other countries — but has threatened to reimpose them in July once a 90-day freeze ends.
Shipments of chips, South Korea's biggest export, rose 17.2 per cent, the largest jump in four months and the highest ever for the month of April, according to the trade ministry.
Also booming were wireless communication devices including smartphones and biopharmaceutical products, with increases of 26.5 per cent and 21.8 per cent, respectively.
Overall exports by Asia's fourth largest economy, a key US trading partner that is also home to a major auto industry, rose 3.7 per cent to US$58.2 billion (RM251 billion), according to the Korea Customs Service.
Last week South Korea's SK hynix, the world's second-largest memory chip maker, reported record quarterly profits, thanks to soaring global demand for artificial intelligence products.
Local rival Samsung Electronics — a global chip and smartphone giant — yesterday posted a better-than-expected 21.7 per cent rise in first-quarter net profit, buoyed by strong smartphone sales.
Experts say the figures partly reflect customers and companies buying large volumes of chips and smartphones before higher tariffs bite.
'Recognising the unpredictable future, many opted to buy and stockpile ahead of time. I view that decision as rational,' Cho Dong-geun, professor emeritus of economics at Myongji University, told AFP.
People in the US 'also rushed to buy smartphones, fearing that potential tariffs would soon make them more expensive,' he added.
Shipments of cosmetic and beauty products rose by 20.8 per cent, while exports of agri-food products also went up by 8.6 per cent.
Exports to the European Union jumped 18.4 per cent to a monthly record high of US$6.7 billion, while those to China also rose 3.9 per cent.
But shipments to the United States dropped by 6.8 per cent, while overall exports of automobiles also declined 3.8 per cent.
Trade minister Ahn Duk-geun said the data — particularly with China and the EU — is 'evidence that the competitiveness of Korean exports remains solid despite external uncertainties'.
Imports dropped by 2.7 per cent in April, resulting in a trade surplus of US$4.8 billion, down from US$4.98 billion in the previous month. — AFP
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