In June, the trade balance with China was in the red for two months in a row with a deficit of $1.214 billion, and the trade surplus for 28 years after the establishment of diplomatic ties.
Korea's total trade grew to $5.5 billion in the 10-day trade deficit in July due to an overwhelming increase in imports, accounting for half of the $10.3 billion deficit in the first half.
As of last year, China, Korea's largest trading partner, accounted for 25.3% of exports, and 22.5% of exports and $138.6 billion of imports.
The decrease in China’s exports is due to the transfer of Chinese imports to Taiwan, and Korea’s share in the Chinese import market last year (2021) fell 1.9%p from 2017 to 8%, according to a recent report by the Korea International Trade Association (Korea International Trade Association). our countermeasures).
According to the report, information and communication (ICT) products, such as computers, peripherals, communication equipment, and electronic components, which were Korea's main export products to China, decreased from 20.5% in 2017 to 17.9% in 2021, while Taiwan and ASEAN's import shares were 5.6%p and 5.6%p, respectively, during the same period. It increased by 1.9%p.
By July 10, Korea's imports increased by 14.1% compared to the same period last year, while exports increased by 4.7%.
The increase in imports was led by coal (125.8%), crude oil (95.4%) and semiconductors (31.6%).
Exports of petroleum products (96.7%) and ships (41.7%) increased overwhelmingly, while semiconductors (10.4%) and passenger cars (6.1%) increased YoY.
The decline in exports was concentrated in precision equipment (-20.4%), home appliances (-27.2%) and auto parts (-14.6%), while wireless communication equipment (-4.7%) and steel products (-2.3%) also decreased.
The trade deficit of $10.3 billion in the first half came from a 15.6% increase in exports and a 26.2% increase in imports.
Korea's trade was followed by 25..43% of China's exports last year, followed by the United States (14.9%), Vietnam (8.8%), Hong Kong (5.8%), and Japan (4.7%). 11.9%), Japan (8.9%), Australia (5.4%) and Saudi Arabia (3.9%).
At the NATO summit (28th of last month) during the Yoon Seok-yeol administration, senior economic minister Choi Sang-mok said, "China's growth is slowing and the strategy is shifting to a strategy centered on domestic demand. The era of booming exports through China that we have enjoyed over the past 20 years is coming to an end. "China's alternative market is needed and the market needs to be diversified," he said. "We need to strengthen cooperation with Europe." When asked about how China evaluates China, spokesperson Zhao Lijian said, "I know what Chief Choi Sang-mok's remarks were, and I also know that the related content provoked attention and repercussions in both countries." It increased by 26.9% compared to the previous year, and the cumulative amount of mutual investment between Korea and China exceeded 100 billion dollars. These figures show that the Sino-Korea economy is highly integrated, so you are in me and I am in you.” %), Vietnam (15.5%), Singapore (49.7%), Taiwan (13.9%), India (17.9%) and Malaysia (70.8%), followed by China (-8.9%) and the European Union (-18.6%). , Japan (-9.1%) and Hong Kong (-47.8%).
Imports increased by China (13.2%), the United States (4.9%), Saudi Arabia (192.3%), Australia (16.4%), Taiwan (47.7%), Vietnam (4.1%) and Malaysia (16.7%), while the decline was in Europe Coalition (-36.0%) and Russia (-20.8%).
As a result of the trade deficit with China, the consumer price index rose 5.4% in May (vs. the same period last year) and soared to 6.0% in June. The consumer price inflation rate was 4.8% in April and 6.8% in November 1998, during the Asian financial crisis.
Regarding the achievements of the NATO summit on the 4th, President Yoon ordered the bloc of the liberal national economic system, saying, "Many countries have a sense of crisis and need to solve the problems of inflation and supply chain through solidarity between countries that share values."
In his inaugural address in May, Lee Chang-yong, governor of the Bank of Korea, said, “The Korean economy is at the crossroads of a great transformation, saying, “The Korean economy is at the crossroads of a great transformation. The responsibility of the Bank of Korea cannot be confined to the rim of monetary policy,” he said.