US, ASEAN demand sees rebound in South Korean exports

SEOUL – South Korean exports grew 2.6% y/y in July, turning around from a 1.0% contraction in June. Imports also rose 2.7% y/y, surprising market expectations of -1.2%. As a result, the trade balance declined from June’s US$5.5 billion to US$2.7 billion in July. ANZ Bank says the outlook for the rest of 2013 appears brighter. Exports to the US have picked up in recent months (Q2 +9% y/y vs Q1 -4.7%), reflecting a general recovery of the US consumer market, and demand from both China and ASEAN registered positive growth in the first half.