Export, which accounts for about half of the export-driven economy, diminished 16.5 percent over the year to 50.33 billion U.S. dollars in July, continuing to fall since October last year, according to the Ministry of Trade, Industry and Energy.
Import tumbled 25.4 percent from a year earlier to 48.71 billion dollars in July.
Affected by the faster fall in import than export, the trade balance recorded a surplus of 1.62 billion dollars.
The trade balance stayed in black for the second straight month, but it was a recession-style surplus due to reduction in both export and import.
The export reduction was attributable to the still weak global demand for chips and oil products.
Semiconductor export dipped 33.6 percent over the year to 7.44 billion dollars in July, continuing a downward trend for the 12th consecutive month since August last year on the back of lower memory chip prices.
Shipment for petrochemicals and oil products dropped in double digits to 3.50 billion dollars and 3.69 billion dollars each amid the cheaper crude oil.
Dubai crude, South Korea's benchmark, traded at 80.45 dollars per barrel in July, down from 103.14 dollars a year earlier.
Steel products shipment retreated 10.2 percent to 2.96 billion dollars amid lower product prices, and mobile phone export dwindled 15.3 percent to 950 million dollars on the weakened global demand.
Display panel export shrank 4.6 percent to 1.69 billion dollars last month on the delayed demand for mobile panels, and computer shipment plunged 33.4 percent to 720 million dollars.
Automotive export gained 15.0 percent to 5.90 billion dollars in July, continuing to expand for the 13th consecutive month on strong demand for eco-friendly vehicles.
General machinery shipment climbed 3.2 percent to 4.41 billion dollars, maintaining an upward trend for the fourth straight month on higher facility investment in the United States and the European Union.
Auto parts export fell 0.5 percent to 2.02 billion dollars last month, and secondary battery export reduced in double digits to 740 million dollars.
By region, export to the United States declined 8.1 percent over the year to 9.28 billion dollars in July, but it topped 9 billion dollars for the fifth successive month.
Shipment to the Association of Southeast Asian Nations plunged 22.8 percent to 8.82 billion dollars, while export to the EU decreased 8.4 percent to 5.64 billion dollars.
Those to Latin American countries and the Middle East slipped in single digits to 1.99 billion dollars and 1.48 billion dollars respectively.
Meanwhile, the double-digit fall in import was caused by lower energy import costs.
Import for crude oil, natural gas and coal dipped 45.8 percent, 51.1 percent and 46.3 percent each in July compared to the same month of last year.
Local demand for imported chips, steel products and semiconductor equipment all declined last month.
Import for lithium hydroxide and lithium carbonate, or materials necessary to produce secondary batteries, advanced in double figures.
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