Skip to content
Economics
Trade

Bad News for Global Trade as South Korea Posts Worst Goods Deficit Ever

  • Mounting trade deficits weigh on Korea’s current account
  • Central bank points to Korea’s vulnerability to energy market
Rising commodity prices, supply-chain snags and slowing demand for semiconductors have been among factors weighing on exports.

Rising commodity prices, supply-chain snags and slowing demand for semiconductors have been among factors weighing on exports.

Photographer: SeongJoon Cho/Bloomberg
Updated on

South Korea posted its worst goods deficit on record, underscoring strains in the trade-reliant economy that’s facing slowing global demand, elevated oil prices and rising interest rates.

The shortfall in the goods balance came in at $4.4 billion in August, worsening from $1.4 billion in the previous month, according to data released Friday by the Bank of Korea. The overall current account also fell into the red, posting a deficit of $3.1 billion, the worst in more than two years.