September 7, South Korean Trade, Industry and Energy (MOTIE) Ministry convened senior officials including steel, shipbuilding and automotive industries together to discuss and solve the problem of sluggish exports in recent months.
MOTIE analysis pointed out that the steel (1929, -27.00, -1.38%) decline in exports was mainly due to the United States, China and Japan and other major export markets reduced demand. January to August this year, South Korea’s steel exports to the US fell by 20.1 percent, steel exports to Japan fell 17.1 percent, steel exports to China fell by 10.9%. Moreover, the continued weakness in the prices of raw materials needed for steel caused by lower export unit price of steel is also an important reason.
Meanwhile, in August, the Korean shipbuilding industry’s total exports also fell 51.5 percent up compared to last year. For the automotive industry, MOTIE believe their exports decline was mainly due to raw material prices and the recession in emerging economies. In addition, the impact of the depreciation of the yen, South Korean goods and competition is relatively weak commodity Japan automotive industry exports decline.