Biased diplomacy Trade deficit Expansion of semiconductor deficit U.S. return to dependence on Japan

Biased diplomacy Trade deficit Expansion of semiconductor deficit U.S. return to dependence on Japan

 

U.S.-Japan biased diplomacy has expanded the trade deficit and semiconductor deficit, returning the economy from the Cold War system to an economy dependent on the U.S. and Japan under a security umbrella.
The trade deficit for 10 days in October shows the failure of the government's attempted V rebound as exports decreased and imports increased compared to the same period last year, and Samsung Electronics recorded a semiconductor deficit in the 2 trillion won range in the third quarter.
According to the Korea Customs Service, exports for the 10 days from October 1st were $11.6 billion, down 1.7% ($200 million) from the same period last year, and imports were $16.9 billion, up 8.4% ($1.31 billion), resulting in a trade deficit of $5.343 billion. It was announced on the 11th.
Exports increased mainly in the United States (14.7%) and Japan (12.3%), and there was a clear decrease in China (4.2%), Vietnam (0.9%), and the European Union (27.3%), which were the largest export countries, resulting in a developing country-type planned economy dependent on the United States and Japan. shows a typical example of
Imports increased from the United States (20.6%) and Japan (1.1%), and the increase from China (14.8%), a neighboring trading country, replaced the decrease in exports.
Imports especially decreased from Saudi Arabia (37.0%), Russia (11.1%), and the European Union (3.2%), showing a typical example of biased diplomacy.
The annual trade deficit was a cumulative deficit of $475.865 billion in exports and $500.895 billion in imports.
The import structure shows signs of an economic recession, with a concentrated increase in semiconductors (21.3%) and machinery (17.7%) compared to the same period last year, a slight increase in crude oil (7.0%), and a decrease in gas (21.2%) and wireless communication devices (1.7%).
Samsung Electronics' semiconductor DS division recorded a deficit of around 3 trillion won in the third quarter.
On the 11th, Samsung Electronics announced an operating profit of 2.4 trillion won in the third quarter, but no semiconductor deficit was announced.
Samsung Electronics announced consolidated sales of KRW 67 trillion and operating profit of KRW 2.4 trillion in the third quarter, revealing a 12.74% decline in sales and a sharp decline of 77.88% in operating profit compared to the third quarter of last year.
Korea's exports have been declining for 12 months compared to the same month last year, and imports have also continued to decline, leading to a recession in which ‘the decline in imports exceeds the decline in exports’.
The Korean economy is completely polarized in terms of exports, with increases in automobiles and ships and decreases in semiconductors and chemical products.
In June trade statistics, the increase in passenger car exports was evident, increasing 60.7% to $5.99 billion from $3.73 billion a year ago.
Ship exports in June doubled (96.2%) from $1.21 billion to $2.37 billion.
In June, semiconductor exports decreased from $12.58 billion to $9.06 billion, increasing the decline rate to 28.0% and continuing the decline.
Deputy Prime Minister Chu Kyung-ho said in an answer to the National Assembly on May 21, "The trade balance deficit was at its smallest in April, but it will not be good in May due to last year's base effect, etc." He added, "After May, the deficit will improve, and in the fourth quarter, it will not be good." “You will be able to see external performance that is completely different from what it is now,” he said.
<Korean trade polarization, continued decline in Chinese exports, rapid increase in Japanese dividend income, August 8, 2023. Reuters: ‘Production decreases’ in May; Korean media: ‘Production indicators increase’; Chu Kyung-ho: May low ‘failure’, see June 30th issue>