Korea posted lackluster trade numbers in October, adding to concerns that a combination of domestic headwinds, involving the recall of Samsung Electronics’ Galaxy Note7 device, and tepid demand abroad for Korean exports, has left long-lasting effects on the nation’s economy.
According to the Ministry of Trade, Industry and Energy on Tuesday, exports fell 3.2 percent year on year to $41.9 billion in October. This was the second straight month that year-on-year growth fell, after rising for the first time in 20 months back in August.
Export volume also dropped 3.3 percent year on year largely due to weak performance in automobiles and mobile devices.
Exports to Vietnam rose for the ninth consecutive month, with the figure increasing 19.9 percent year on year last month.
Exports to Middle Eastern countries rose by 10 percent, whereas exports to the United States and Japan fell 10.3 percent and 1.7 percent each.
The consumer price of food, including agricultural produce, livestock and fishery products, rose 8.1 percent last month. The price of food contributed to raising the overall inflation by 0.6 percentage points.
Yoo Soo-young, a director at the Ministry of Strategy and Finance said “The government will closely monitor consumer prices that might give a financial burden to people ahead of gimjang, Korea’s kimchi-making season.”
The consumer price of fresh produce, especially those used for making kimchi, rose 15.4 percent in October, and the figure rose by more than double digits for the second straight month.
The price of napa cabbage, a key ingredient for kimchi, jumped 143.6 percent compared to the previous year. The price of white radish rose 139.7 percent, and that of lettuce increased by 76.5 percent.
