Chairman Christopher Koo of the Korean International Trade Association (KITA). (Photo: KITA)

Korea saw cumulative exports surpass $300 billion in the first six months of this year, setting a new record in the process. Exports soared about 40 percent year-on-year, the most ever, in June.

Q2 exports jumped 42.1 percent over the same period of last year. The Ministry of Trade, Industry and Energy (MOTIE) said on July 1 that Korea posted $54.8 billion in exports in June, a 39.7 percent year-on-year jump. The nation saw exports rise for the eighth consecutive month since last November.

In June, exports topped $50 billion for the fourth consecutive month. This year’s higher growth rate was owed to the recovery of the global economy, which was frozen last year.

Looking into each export item, 15 mainstay items registered some level of growth in June. Fourteen of them posted a double-digit growth rate.

The nation posted a $4.44 billion surplus for the 14th consecutive month. Semiconductor exports amounted to $11.16 billion, topping $10 billion for the second consecutive month.

The outlook for H2 exports is rosy. The Korea International Trade Association (KITA) predicts that the nation will see exports soar to $601.7 billion this year, a 17.4 percent surge over last year.
KITA Helps Solve SME Exporter Cargo Ship Shortage

KITA has contributed to resolving difficulties facing small- and medium-sized exporters related to overseas cargo shipments

KITA Chairman Christopher Koo helped persuade conglomerates to provide assistance to SME exporters who have had overseas shipments deferred due to a cargo ship shortage.

In a related development, Hyundai Glovis, a logistics unit of Hyundai Motor Group, agreed to provide logistics support to SMEs grappling with difficulties related to overseas cargo shipments using pure car and truck carriers (PCTCs).

Hyundai Glovis President Kim Jung-hoon struck an agreement on the provision of logistics support to SMEs with KITA Executive Vice Chairman Lee Kwan-sup at Korea Trade Center in Samseong-dong, Seoul, on July 21.

The latest deal came after KITA and POSCO struck an MOU on cooperation to support maritime transportation to SMEs at Trade Center in Samseong-dong, Seoul, on June 21.

KITA Comes to Aid of Exporters Grappling with Logistics Problems

Exporters are plagued with problems related to reducing shipping expenses and efficiency of conventional logistics systems.

KITA launched a project to provide on-site consulting services on importers and exporters in April.

KITA came to the aid of 45 companies in three months since its launch, nearly half of the target of 100 companies for this year.

Looking into specifics, except integrated consulting service related to the whole of the logistics sector, consulting requests related to reduction in shipping costs and efficiency of logistics numbered 40 and 38 cases, accounting for 46.7 percent of the total.

They were followed by 33 and 26 cases, citing a reduction in warehouse costs and the utilization of free trade agreements, respectively.

By area, Seoul topped with 14 cases, followed by Gyeonggi-do with 11 cases and Chungcheongbuk-do with nine cases.

A Cheongju-based company said it had spent an average of 10 million won monthly to send its products overseas via an international express mail delivery company.

The company managed to slash logistics costs least 30 percent using a company specializing in logistics, with the direction of consulting services.

An Incheon-based food processing company said it suffered difficulties in delivering documents and sharing work since all jobs related to food quarantine, inland transportation, customs clearance and tariffs are outsourced.

The company found it easy to carry out the related jobs thanks to a specialized company recommended by KITA.

Huh Duk-jin, head of KITA’s member support division, said there are many cases in which SME importers and exporters shoulder excessive logistics costs due to insufficient specialization manpower and expertise.

KITA will spearhead efforts to help Korean SMEs improve logistics process efficiency and reduce their logistics costs.