S. Korea's exports soar 11.4% in Jan. on strong demand for chips, auto

South Korea's exports in January rose 11.4 percent to US$48 billion from $43 billion a year earlier due to brisk demand for chips and cars, based on data from the Ministry of Trade, Industry, and Energy,

The increase was for the third consecutive and beat market expectations based on a poll by Yonhap Infomax of a 9.7 percent on-year increase.

Imports jumped 3.1 percent to $44 billion, resulting in a $3.96 billion trade surplus. It was the ninth consecutive month for South Korea to post a trade surplus.

Export of chips was the country's biggest, reaching 8.7 billion after a 21.7 percent on-year increase in January. It was the fifth consecutive month of increase for chips, which accounted for 18 percent of the monthly exports.

Automobile exports marked the sharpest growth since September 2017 at 40.2 percent on-year to reach $4 billion.

The growth was driven by strong demand for eco-friendly cars and sports utility vehicles.

Shipments of mobile devices shot up 58 percent while and display products soared 32.3 percent.

Exports of biohealth products, including COVID-19 test kits, soared 66.5 percent on-year to reach $1.28 billion.

Petrochemical products exports rebounded 8.6 percent to register their first growth in over two years due to increased demand from the medical sector.

Meanwhile, overseas sales of petroleum products plummeted 46 percent due to weak oil prices.

Shipments to the US surged 46.1 percent as people purchased more cars to avoid using public transportation because of the pandemic.

Exports to China jumped 22 percent due to increased demand for chips, machinery, and mobile devices.

Shipments to the EU rose 23.9 percent, mostly of automobiles and COVID-19 test kits.

Meanwhile, exports to Southeast Asia dropped 15.2 percent due to sluggish business sentiment.