GWANGJU < invest Korea

Exports from Gwangju and South Jeolla, which slowed in the second quarter of the year, rebounded in the third quarter, and are continuing to show an increasing trend in the fourth quarter, leading to expectations for annual exports to reach a record high of USD 60 billion.

According to trends in Gwanju and South Jeolla’s exports and imports in the third quarter released by the Gwangju and South Jeolla branch of the Korea International Trade Association (KITA) yesterday, exports reached USD 14.39 billion, showing a 6.2 percent growth year-on-year. It rebounded after decreasing by 1.4 percent in the second quarter.

Whereas Korea’s total exports in the third quarter showed only 2.8 percent growth, Gwangju and South Jeolla’s export ranked third among 16 metropolitan cities and provinces, following North Chungcheong Province (19.9 percent) and Gyeonggi Province (17.5 percent).

Exports from Gwangju in the third quarter rose by 6.9 percent from the second quarter to reach USD 3.66 billion. It increased for straight three quarters since the first quarter of the year.

Exports of semiconductors and automobiles grew by 44.2 percent and 2.1 percent, respectively to lead the increase in Gwangju exports.

Semiconductor exports showed a large increase due to high prices of memory semiconductors with growing IT market and rise in demand for new semiconductors based on greater production of low-priced smartphones.

Despite reduced production due to less working days and hours in September, automobile exports rose by 2.1 percent. However, exports of refrigerators and tires dropped by 3.3 percent and 16. 9 percent respectively.

Exports to advanced countries, including the United States (-8.3 percent), Japan (-40.9 percent) and Canada (-18.1 percent), were decreased, whereas those to Singapore (137 percent) and China (70.9 percent) increased.

South Jeolla’s exports in the third quarter rose by 6.0 percent year-on-year, turning positive after dropping by 6.5 percent in the second quarter.

Exports of petroleum and petrochemical products, including diesel (5.2 percent) and synthetic resin (2.5 percent) rose to lead the overall increase.

South Jeolla’s oil product exports also rose by 20.7 percent, while Korea’s total oil product exports in the third quarter dropped by 9 percent due to maintenance by Korean oil companies, less working days and decreased prices of oil products.

Steel exports continued to show a decreasing trend for two consecutive quarters due to decelerated global steel market. Oversupply due to increased production from China and Japan and slowed demand from ASEAN market led to 9.8 percent and 25.7 percent drop in the second and third quarter, respectively.

Exports to China, Singapore and Australia rose by 10.3 percent, 52.8 percent and 125.8 percent, respectively, whereas those to Japan (-8.3 percent), United States (-4.8 percent) and India (-13.9 percent) were reduced.

Exports from Gwangju and South Jeolla in the fourth quarter are expected to reach USD 16.23 billion, showing an 8.7 percent growth year-on-year. Annual exports are forecast to rise by 5.7 percent from last year to record USD 59.23 billion.

If the increasing trend continues, Gwangju and South Jeolla’s exports are expected to set a record high.

Gwangju’s annual exports are predicted to reach USD 16 billion, increased by 13.2 percent from last year due to strong semiconductor exports, normalized automobile production schedule and release of new automobiles.

South Jeolla’s exports are forecast show 3.2 percent growth year-on-year to record USD 43.23 billion if demands for high-added value ships and exports of petrochemical and oil products increase.

A KITA official noted that there are still external risks, but Gwangju and South Jeolla’s exports are forecast to set a record high if exports continue to increase in the fourth quarter.

Source Text

Source: Newsis (Oct. 21, 2013)

** This article was translated from the Korean.