Chungcheongnam-do

▲ Chungnam’s import and export trend analysis data

Despite measures implemented by the U.S. and China for reinforcement of global protectionism, export profits of the Chungnam region reached $50 billion as of the end of August, recording the highest value by August of any year in history.

According to Chungnam import and export trend analysis data as of August 2017, the total amount of export profits of the Chungnam region as of the end of August was $49,993,000,000, a 20.6% increase from the same period last year ($41,447,000,000). By early September, it is expected to reach $50 billion in export profits in the shortest time in history. In the same time period, the total amount of imports into the province was $19,790,000,000, a 44.1% increase ($6,0340,000,000) from the previous year ($13,675,000,000). Thus, the trade balance in the Chungnam region by the end of August was $30,284,000,000 in surplus, a $2,512,000,000 rise from the same period last year ($27,772,000,000 in surplus).

Analysis revealed that Chungnam’s export profits this year had continuously seen double-digit growth rate since January (24.5%), temporarily decreased to single-digit growth in July (8.2%) and recovered its double-digit growth rate in August (14.9%). This year, Chungnam accounted for 13.3% in export profits and 10.1% in turnover nationwide and was placed in second place, only trailing Gyeonggi-do, in export ranking.

Looking at different items, the biggest outcome of Chungnam’s exports up to the end of August this year was shown in information and communication technology, recording $21,325,000,000 in exports due to the effect of an increase in unit price thanks to a favorable market.

Also, the export of petroleum products and petrochemical products, which are affected by the price of oil, recorded $5,595,000,000, a 31.5% increase over the same period last year ($4,255,000,000). Items that have shown a significant rate of increase in exports are △semiconductors (85.7%), △petroleum products (45.1%), △basic oil (89.5%), △batteries and storage batteries (208.4%), etc., all of which have rapidly grown primarily in Asia, solidified as the second main export items of Chungnam.

Looking at the province’s exports to different regions, its international marketing support in a variety of ways that had been pursued with an emphasis showed innovative results in diversification of export markets. As of the end of August, Chungnam has greatly increased its sales to △ New Zealand (166.3%), △ Netherlands (79.5%), △ Brazil (99.6%), etc. to expand its export base from primarily advanced countries to other regions including Central and South Americas.

On the other hand, due to the effects of THAAD, exports decreased by 2.3% and 10.3% in April ($1,868,000,000) and August ($1,862,000,000), respectively, compared to the same periods last year.

Meanwhile, the exporting of semiconductors recorded $4,212,000,000 by the end of August due to an increased demand in memory thanks to releases of new smartphones, leading Chungnam’s China exports ($15,063,000,000).

Lee Dong-soon, Corporate Commercial Trading Team Manager, stated, “The inner, hidden risks in the export environment such as intensification of global protectionism and increased chances for exchange rate volatility are expected to further expand in the second half…through, continuous monitoring, strategic support for exports and diversification of Chungnam’s export goods and markets, the province will do its best for successful innovation in the export structure and support of international marketing”.