South Korea’s exports stood their ground in March, losing 0.2 percent on year, but the worst is yet to come as the coronavirus pandemic has only begun to wreak havoc on U.S. and European business activities and global demand.

Korea’s outbound shipments in March totaled $46.91 billion, down 0.2 percent from the same month a year ago, the Ministry of Trade, Industry and Energy reported Wednesday.

Imports inched down 0.3 percent to $41.87 billion for a current account surplus of $5.04 billion, extending the surplus streak for the 98th straight month.

Average daily exports dropped 6.4 percent in March from the year-ago period.

Outbound shipments of semiconductors, Korea’s mainstay, fell 2.7 percent on year, sliding back after reporting their first gain in February in 15 months.

But computer shipments surged 82.3 percent due to the rise in remote working and online learning from the virus-driven lockdown across the world. Wireless communication equipment also rose 13.3 percent.

Shipments of textiles shrank 8.8 percent, with petrochemicals and petroleum products down 9.0 percent and 5.9 percent, respectively, on reduced demand from the slowed economic activity worldwide.

The pandemic took a bigger toll on export prices than on volume. Shipment prices plummeted 11.7 percent last month, with petroleum products down 22.7 percent, petrochemicals 17.2 percent, textiles 9.7 percent and steel 9.1 percent.

Meanwhile shipment volume rose 13.1 percent, up for the second straight month. Chip export volume gained 27.3 percent, heading upwards for nine straight months. Fourteen of the 20 major export items saw their export volumes increase, with petroleum products up 33.8 percent, petrochemicals 17.5 percent and steel 14.8 percent.

Shipments to China fell while those to the United States and Europe climbed.

“The (coronavirus) impact on exports appears to have been limited in March. Exports are likely to suffer in the coming months as the global spread of COVID-19 continues,” said a trade ministry official.

Finance Minister Hong Nam-ki, in an emergency meeting on Wednesday, pledged bigger support for exporting companies.

“Exporters are the backbone of Korea’s economy,” Hong said. “We plan to roll out policies to remove business hurdles for exporting companies and address weaknesses in the global supply chain.”

In another economic relief measure, Hong said monthly rental fees for airport duty-free shops would be cut further to 50 percent from 25 percent for small businesses and individuals, with outlets run by big companies also to benefit from a 20-percent reduction for up to six months.

By Kim Hyo-jin

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]