September 1, 2018 / 1:57 AM / 8 months ago

UPDATE 2-S.Korea's Aug exports rise for 2nd mth but miss forecasts

* Trade misses forecasts

* Aug exports +8.7 pct y/y (Reuters poll +10.1 pct)

* Aug imports +9.2 pct y/y (Reuters poll +7.7 pct) (Adds details on crude oil imports)

By Cynthia Kim

SEOUL, Sept 1 - Stronger global demand for memory chips and petrochemicals helped fuel an 8.7 percent increase in South Korea’s exports in August, marking a second straight month of gains amid escalating trade tension between China and the United States.

The rate of growth was somewhat less than expected, however. Analysts polled by Reuters had forecast a 10.1 percent gain from a year earlier.

Exports stood at $51.2 billion, slightly below July’s $51.9 billion, government data showed on Saturday.

Imports rose 9.2 percent to $44.3 billion, beating forecasts for a 7.7 percent increase.

That produced a provisional trade surplus of $6.9 billion, little changed from July.

Yoon Jong-won, a top presidential aide on economic affairs, said on Thursday that South Korea’s exports will continue to grow at a solid pace for a while, as exporters will benefit from an uptick in shipments of petrochemicals, memory chips, and robots, as well as renewable energy products.

Economists say trade tensions between the U.S. and China have not yet dealt a serious blow to South Korean economy, though risks are mounting as President Donald Trump threatens to impose even more sweeping tariffs on Chinese goods within weeks.

“The Sino-U.S. trade war didn’t seem to have had an impact in South Korea’s August exports. Rather, a weaker won and robust U.S. economy boosted demand for South Korean goods,” said Lee Sang-jae, an economist at Eugene Securities.

“Having said that, there is good chance of exports shrinking if slapping of tariffs between the U.S. and China widen,” Lee said.

South Korean exports grew 15.8 percent in 2017, but policymakers expect the pace to slow down to 5.3 percent this year and 2.5 percent in 2019.

Of the nation’s 13 major exports items, shipments of 10 items, including memory chips, petrochemical products, computers and steel products increased in August.

Sales of memory chips jumped 31.5 percent on-year, continuing a stellar growth trend as the nation’s chipmakers including Samsung Electronics <005930.KS > and SK Hynix ride a “super-cycle” of tight supply and soaring demand for chips.

Car exports rose 0.5 percent on-year, after dropping 13.7 percent in July, as the launch of new models in the U.S. boosted sales of South Korean cars, the government statement said.

Exports of cosmetics products and clothes surged 25.7 percent and 12.5 percent on-year, respectively.

By destination, exports to China, South Korea’s biggest trading partner, jumped 20.8 percent on-year while those to the U.S. increased 1.5 percent.

The nation’s trade ministry said surging global oil prices helped boost the import tally in August.

“Imports of crude oil (and) liquefied natural gas rose with rising oil prices, while that for gasoline cars and medical supplies jumped to meet local demand,” the trade ministry said in the statement.

Imports of crude oil increased 44.2 percent on-year in value terms due to higher energy prices, but volumes declined 9.2 percent from a year earlier to 92.2 million barrels, according to the ministry. (Editing by Kim Coghill)

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