South Korea’s exports declined for the eighth month in a row in May due to the continued weakness of global demand for storage chips, however, compared to April, the decline was slightly lower. According to data from South Korea’s Ministry of Trade, Industry and Energy, foreign exports fell 15.2 percent compared to May, to $522.4 billion, a decrease of 16.3 percent over economists’ expectations.

As a major exporter of products such as semiconductors, displays, and finished oils, South Korea is seen as a lightning indicator of international trade. Regulatory data show that South Korea’s declining export momentum in May has slowed for the second month in a row, and there may be signs of recovery.

In April, Korean semiconductor inventories recorded the largest increase in seven years, highlighting the continued weakness of global demand for chips. Due to falling demand and falling chip prices, Korean main exports, semiconductor exports fell 36.2% in May to $73,7 billion.

On the other hand, in May, imports fell 14% compared to $543,4 billion, with a trade deficit of $2.1 billion. This was the first consecutive 15-month trade deficit since 1997. However, the data showed that the monthly trade deficit fell from $125,2 billion in January to $53,3 billion in February, to $46,3 billion in March, and further narrowed to $26,5 billion in April, showing trade conditions are improving.

South Korea’s exports to six major trade export destinations (China, the United States, ASEAN, the European Union, Latin America, and the Middle East) fell in comparison in May. Due to China’s declining demand for Korean chips and other IT products, South Korea’s exports to China declined by 20.8% in May to $106,2 billion. This is the 12th consecutive month of decline, but this is the lowest since October last year.

South Koreas Minister of Trade, Industry and Energy, Li Changyang, said that despite the continued difficult global economic situation, South Koreas trade deficit has decreased month by month, and there are signs of rising Japanese exports. he added that the South Korean government will strengthen exports by expanding its support for prospective projects, diversifying markets and major exports.

新韓證券（Shinhan Securities Co.）的經(jīng)濟(jì)學(xué)家Ha Keon-hyeong表示，"情況可能并不像一些人預(yù)期的那么糟糕，但科技行業(yè)必須加快步伐。"