Korea Now: South Korea’s Exports and North Korea’s Foreign Currency Reserves

Welcome to Korea Now, where we bring you the latest news from Korea. I’m your host, and joining me today is reporter Wonki Choi.

South Korea’s Exports Reach $57.9 Billion in August

Reporter Wonki Choi: South Korea’s exports in August reached $57.9 billion, with imports at $54.1 billion, resulting in a trade balance surplus of $3.8 billion. This marks the 11th consecutive month of export growth since October last year.

Host) What’s driving this growth?

Reporter Wonki Choi: Semiconductor exports led the way, with $11.9 billion in August. The combined export amount of semiconductors from January to August this year is $88.8 billion, and we expect this trend to continue in the fourth quarter.

Automobile Exports Slow Down

Reporter Wonki Choi: Automobile exports, on the other hand, have slowed down a bit. We saw a 4.3% decrease from the same period last year, with exports amounting to $5.1 billion. Hybrid car exports increased, but electric car exports decreased by 54%.

Cosmetics and Food Exports on the Rise

Reporter Wonki Choi: Cosmetics exports continued to increase, reaching $800 million in August. Agricultural and food products, such as kimbap, ramen, and snacks, were exported at $6.4 billion.

North Korea’s Foreign Currency Reserves Depleted

Reporter Wonki Choi: According to a report by the Korea Institute for National Strategy, North Korea’s foreign currency reserves are being depleted. The report estimates that North Korea earned $6.2 billion in income through illegal activities over the past seven years.

Host) What kind of illegal activities are we talking about?

Reporter Wonki Choi: North Korea is under UN Security Council sanctions due to its nuclear development. Most illegal transactions are seen as violations of these sanctions. This includes coal smuggling, arms exports, cyber hacking, and dispatching foreign currency-earning workers.

Coal Smuggling Accounts for Largest Portion of Illegal Activities

Reporter Wonki Choi: Coal smuggling accounts for the largest portion at $2.15 billion. Foreign currency earned by sending workers to China and Russia accounted for $1.75 billion, while Internet hacking and cyber foreign currency earned accounted for $1.35 billion.

North Korea’s Foreign Currency Reserves Estimated at $8.1-8.6 Billion

Reporter Wonki Choi: It’s estimated that North Korea’s total foreign currency holdings are around $8.1-8.6 billion. However, most of the foreign currency is held by the private sector, so the foreign currency controlled by the government is likely to be quite small.

Host) Thank you, Wonki Choi, for joining us today.

Reporter Wonki Choi: Thank you.