South Korea’s exports has been in downturn for the past three months due to reduced chip demand and sluggish demand from China under unrelenting trade war with the United States.

The country’s exports in February totaled $39.56 billion, down 11.1 percent from a year ago and steeper than the 5.8 percent fall in January, according to data released by the Ministry of Trade, Industry and Energy on Friday. The last time exports declined for three months in a row was in May-July 2016.

The fall in outbound shipments was largely attributable to the downtrend in semiconductors that sustained double-digit growth last year.

Exports of semiconductors plunged 24.8 percent from a year earlier amid slow demand and reduced orders. Softer chip prices also were a big reason for the slowdown. The price of 8-gigabyte DDR4 DRAM memory chips averaged at $5.9 in February, off 36.8 percent from the same month of last year’s $9.3, according to the ministry.

Petroleum and petrochemical exports also contracted 14 percent and 14.3 percent, respectively, on weaker oil prices. Other exports items that turned weaker include ships (46.5%), wireless communication devices (15.3 percent), and displays (11 percent).

Among the gainers were automobile (up 2.7 percent), general equipment (2.7 percent), and steel (1.3 percent).

Exports to China shrank 17.4 percent on year for four months in a row in February. Shipments to European Union also shriveled 8.5 percent.

Trade surplus came at $3.1 billion as imports totaled $36.47 billion last month.

The trade ministry is planning to prepare and announce its preemptive measures on Monday to counter the slowdown in exports in cooperation with other trade-related government officials.

By Lim Sung-hyun and Lee Ha-yeon

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