South Korea's exports to China rose 22% year on year in January as a result of more sales of semiconductor chips, machinery and mobile devices, Ministry of Trade, Industry and Energy data showed Monday.
However, exports to Southeast Asia slipped 15.2% thanks to sluggish business sentiment there, the ministry said.
South Korea's trade surplus increased to $3.96 billion in January from $0.39 billion in the same month a year earlier, the ministry's preliminary estimates said. This was the ninth consecutive month of trade surplus.
Overall exports rose 11.4% year on year to $48 billion - the third consecutive month of increase in exports. Imports rose 3.1% to $44 billion, according to the ministry.
It attributed the performance to "brisk demand for chips and cars...though the global resurgence of new virus cases hindered a full-fledged recovery."
The January figure beat market expectations. According to a poll by Yonhap Infomax, the financial arm of Yonhap News Agency, the country's January exports were expected to have risen 9.7% on year.
By segment, outbound shipments of chips advanced 21.7% to $8.7 billion. Chips accounted for 18% of the monthly exports. The growth was attributable to rising demand from data centers, the data said.
Exports of automobiles increased 40.2% on-year to reach $4 billion, marking the sharpest growth since September 2017, driven by strong demand for sport utility vehicles and eco-friendly models.
Shipments of mobile devices and display products shot up 58% and 32.3% over the period, respectively, on the back of the release of new smartphone models, the data showed.
With more people working from home, demand for laptops and TVs also gathered ground, leading to stronger demand for displays.
Shipments to the U.S. rose 46.1% as people there purchased more cars while refraining from using public transportation as a result of the virus. Shipments to the European Union gained 23.9% - mostly as a result of COVID-19 test kits and automobiles.
South Korea's exports had extended their slump to a sixth month in a row in August because of COVID-19 fallout before rebounding in September on increased shipments of chips. In October, exports again fell because of a reemergence of the virus. In the following month, exports again rebounded.
Last year, the country's outbound shipments came to $512.8 billion, down 5.4% from 2019. The South Korean economy, Asia's fourth-largest, suffered a 1% retreat last year, marking the sharpest-ever contraction since the 1997 financial crisis.
The central bank expects Asia's fourth-largest economy to grow 3% this year on the back of the recovery of exports.
