S. Korea's exports to improve in Q2 on strong chip demand: survey
South Korea's exports are expected to improve in the second quarter of this year, despite soaring logistics costs from the Middle East conflict, backed by strong demand for semiconductors, a trade body said Tuesday, Yonhap reports.
The Korea International Trade Association (KITA) said its exports business survey index (ESBI) came to 106.6 for the April-June period this year.
A reading above 100 means optimists outnumber pessimists, while a reading below the benchmark means the opposite. The survey was carried out on around 2,000 exporting companies.
KITA said it anticipates improved export conditions for semiconductors due to strong demand for chips used in smartphones and artificial intelligence (AI).
It also expected export conditions to improve for petroleum-related products, as a hike in oil prices due to the closure of the Hormuz Strait could increase export prices of such products.
But the association projected worsened export conditions for household appliances due to tariff burdens and price competition from those made in China.
Meanwhile, more than a fifth of export companies surveyed by the association cited rising prices of raw materials and logistics expenses as the biggest challenge for the next quarter.
Earlier, it was reported South Korea caps oil prices for the first time in decades.
