South Korea's May exports declined 1.3% due to oil prices.

Sejong, South Korea - The nation's exports declined 1.3% in May to $57.27 billion compared with the same month a year earlier, as falling oil prices drove down petroleum and petrochemical shipments, according to government data released on Sunday.

Imports fell 5.3% to $50.33 billion, resulting in a trade surplus of $6.94 billion, the Ministry of Trade, Industry and Energy said. 

The cumulative trade surplus for January through May reached $19.0 billion, an increase of $4.2 billion from the same period in 2024.

Daily average exports, adjusted for working days, rose 1.0% to $2.66 billion, the highest level this year, according to the ministry data.

Semiconductor exports increased 21.2% to $13.8 billion, a record high for May, driven by demand for high-value memory products, including HBM and DDR5 chips, and rising memory prices. 

Memory chip prices for DDR4 8GB rose to $2.10 from $1.65 the previous month, while DDR5 16GB prices increased to $4.80 from $4.60.

Petroleum product exports dropped 20.9% to $3.58 billion, and petrochemical exports fell 20.8% to $3.24 billion. 

Dubai crude oil prices declined to $ 63.70 per barrel in May from $ 84.00 in the same month last year, the ministry said.

Automotive exports decreased 4.4% to $6.2 billion, marking the fourth consecutive month above $6 billion despite the decline. 

Wireless communication device exports rose 3.9% to $1.3 billion, with smartphone shipments increasing 30.0% to $420 million.

Computer exports gained 2.3% to $1.1 billion, while bio-health exports increased 4.5% to $1.4 billion. Ship exports rose 4.3% to $2.2 billion.

Exports to China decreased by 8.4% to $10.42 billion, and shipments to the United States declined by 8.1% to $10.05 billion. 

Exports to the European Union increased 4.0% to $6.05 billion.

Energy imports decreased by 12.8% to $10.2 billion, primarily due to lower crude oil and natural gas imports. 

Non-energy imports fell 3.2% to $40.2 billion.

Trade Minister Ahn Duk-geun stated that tariff measures were affecting the global economy and South Korean exports, with oil prices falling to the low $60s per barrel, which contributed to the decline in petroleum and petrochemical exports.

The government will implement support measures, including trade insurance worth KRW 150 billion and tariff response vouchers valued at KRW 84.7 billion, allocated through the supplementary budget, Ahn said.