South Korea expects larger trade surplus in June

South Korea will release June trade data on 1 July. Standard Chartered estimates, exports is likely to have fallen 1.2% y/y (versus a 10.9% fall in May) and imports to have dropped 8.7% (versus a 15.3% drop). More working days this June than last year likely prevented a further deterioration in data. 

The information and communications technology sector is likely continued to perform strongly, whereas, automobile and auto-part exports to recover on new model releases in H2-2015, said Standard Chartered. 

"However, slow global economic growth is expeced, particularly in China, to curb any pick-up in export growth. Slightly recovered, albeit still lower, oil prices likely pushed down unit prices of petrochemical exports. We expect the sharp drop in imports to have slowed as oil prices rose, and a larger trade surplus of USD 8.3bn for June", added Standard Chartered.