The Korea Herald

소아쌤

Car exports shrink for ninth consecutive month in July

By KH디지털2

Published : Aug. 9, 2016 - 11:39

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South Korea's automobile exports retreated for nine months in a row in July due largely to contracted global demand and partial strikes in local carmakers, the government said Tuesday.

Outbound shipments of vehicles came to 219,982 units last month, down 16.9 percent from 258,536 units tallied a year earlier, according to the Ministry of Trade, Industry and Energy.


The July figure widened from a 13.9 percent on-year drop in June and a 12.4 percent fall in May. The figure was 19.7 percent in April, the largest decline since September 2009, when it plunged 22 percent in the aftermath of the global financial crisis.

From a month earlier, it also contracted 7.8 percent from June's 242,100 units.

The total value of overseas shipments slid 14.6 percent on-year to $3.39 billion, with a 10.5 percent on-month drop.

For the first seven months of the year, car exports tumbled 13.7 percent on-year to 1.56 million units.

"A slowdown in the global economy and faltering demand in emerging countries dragged down South Korea's car exports, while partial strikes by unionist workers of major car companies brought about setbacks in production," the trade ministry said.

Workers of Hyundai Motor Co., the country's No. 1 carmaker, and its sister Kia Motors Corp. staged separate partial walkouts last month to demand a wage hike and more welfare.

Meanwhile, total output by five local carmakers slumped 10.8 percent on-year in July to 361,158 units from 404,773 due to fewer business days and partial strikes.

Domestic car sales, including sales of imported cars, fell 12.1 percent on-year to a five-year low of 137,992 units last month as the government-led tax-cut program on passenger cars terminated on June 30. (Yonhap)