August 4, 2023 /SemiMedia/ -- South Korea's exports fell further in July as demand for semiconductors deteriorated, dampening hopes of a bottoming out in trade, according to Bloomberg.
The report cited data released by the South Korean Ministry of Trade on August 1, showing that South Korea's exports in July fell by 16.5% year-on-year. Among them, semiconductor exports fell by 34%, which was worse than the 28% decline in the previous month. In terms of export regions, South Korea's exports to China fell by 25.1% in July, and exports to the United States fell by 8.1%.
"Semiconductors are key to exports and we are unlikely to see a recovery until demand recovers and prices rebound. China is reducing its dependence on imports and increasing domestic production, which is putting pressure on South Korea's exports," the analyst said.
Global economic activity has been held back by high inflation, rising interest rates and weak demand in China. But despite this, chipmakers have begun to predict a recovery in shipments as demand picks up after a long period of stagnation.