South Korea exports dive as China woes dent sales, darken outlook

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South Korea exports dive as China woes dent sales, darken outlook
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South Korean exports plunged 19.5% over the first 20 days of October from a year...

SEOUL - South Korean exports plunged 19.5% over the first 20 days of October from a year earlier, pressured by weak sales to China and frail global demand for semiconductors, dealing a fresh blow to a tottering economy.

“You have to look at the semiconductor industry to talk about a rebound in exports because chips account for the largest share of South Korea’s exports,” said Oh Suk-tae, economist at Societe Generale in Seoul. Semiconductor exports, which account for around one-fifth of South Korea’s total overseas shipments, dived 28.8% in value for the Oct. 1-20 period on-year as prices around the world pulled back sharply since late last year after strong rally.

The poor export figures came less than a week after the country’s central bank slashed the policy interest rate to a joint record-low on Wednesday last week, a second cut in three months, to support the faltering economy.

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