South Korea’s export outlook is positive for the second quarter of this year, driven by robust demand for semiconductors, despite rising logistics costs stemming from ongoing tensions in the Middle East, according to a recent report by a leading trade organization.
The Korea International Trade Association (KITA) announced its Exports Business Survey Index (EBSI) for the April-June period at 106.6, signaling anticipated growth.
An EBSI above 100 indicates a prevailing positive sentiment among exporters, with optimists exceeding pessimists. Conversely, a reading below 100 suggests a more negative outlook. The KITA survey polled approximately 2,000 South Korean exporting companies.
KITA forecasts favorable export conditions for the semiconductor industry, fueled by strong global demand for chips utilized in smartphones, artificial intelligence (AI) applications, and other technology sectors.
The association also anticipates improved export performance for petroleum-related products. The potential closure of the Strait of Hormuz could lead to higher oil prices, subsequently increasing the export values of refined petroleum products from South Korea.
However, KITA projects a less optimistic outlook for household appliance exports, citing challenges such as tariff burdens and intense price competition, particularly from manufacturers based in China.
