Exports to China continue to slide in near record-long streak

Korea's exports to China in April marked a 10th month of sliding downwards, the longest skidding streak since the 2008-2009 global financial crisis, trade figures showed Wednesday.

The Korea International Trade Association (KITA) said exports to China last month came to $9.63 billion, an 18.4 percent fall on-year, continuing the downward path that began in July last year.

The longest shrinking streak to date was 11 months, from October 2008 to August 2009. There was also a notable 10-month slide in 1998 when Korea was caught in an Asia-wide foreign exchange crisis.

China buys one-fourth of Korea's exports.

Figures for this year alone show double-digit decreases every month, starting with 21.5 percent in January and 12.9 percent in February to 12.2 percent in March. First-quarter exports to China added up to $28.54 billion, down 15.7 percent from the same quarter last year and the biggest quarterly slump in seven years.

Semiconductors, flat displays and sensors, petroleum products, car components and synthetic resin were noticeable in the exports slowdown. Semiconductors, the top item of shipments to China, fell 19.8 percent. Flat displays and sensors dropped 22.4 percent and synthetic resin 15.7 percent.

Exports of auto parts shed 15.3 percent and petroleum products 10.2 percent.

"Korea exports many intermediate goods to China, but demand for such goods fell as China shifted its economic policy to center on domestic consumption," Ryu Seung-min, a lead researcher on international trade at KITA, said in his analysis.  "But we do expect phased recovery in the latter half of the year as China's market for consumption goods quickly expands."

Separate trade figures showed Korea's exports to the United States in the January-April period this year shrank 4.1 percent, and those to Japan 16.5 percent, compared to the same period last year.

Exports to Vietnam, the fast-rising market for Korea, grew 9 percent during the measured period to $9.85 billion. (Yonhap)