South Korean exports in May suffered their worst decline in eight months as a drop in Chinese demand and the effect from fewer working days more than offset growing purchases by European and American customers, Reuters reported on Monday citing the local authorities.
South Korea's Ministry of Trade, Industry and Energy, said on Sunday exports last month fell 0.9 percent from a year earlier to $47.88 billion, while imports rose 0.3 percent to $42.53 billion.
It resulted in a trade surplus of $5.35 billion.
Exports to China plunged 9 percent in May from a year before, setting the fastest drop in nearly five years and eclipsing a stellar 32 percent jump in sales to the EU and a 4.5 percent rise in shipments to the US.
Analysts and the government called for caution over the May export data, pointing to distortions arising from unusually long holidays falling in May in South Korea and China.
"In May, China had many holidays along with ours and so that, on top of China's slowdown, steepened the fall in exports. I think it's too early to say that we will continue to see a decline in shipments to China," said Park Sang-hyun, chief economist at HI Investment & Securities.
Partly supporting the view on holiday effects, a Chinese government survey showed on Sunday the country's official Purchasing Managers' Index rose to 50.8 in May from 50.4 in April, indicating its manufacturing activity picked up.
The export decline is the first since January this year and the sharpest since September 2013.
The ministry said oil products and liquid-crystal display panels were the main products for which Chinese customers sharply reduced purchases from South Korea.
It said the slowing demand from China deserved a close watch over the coming months, while noting South Korea's global exports as a whole would likely keep growing thanks to a sustained recovery in the advanced economies.
"Given the slowing exports to China in recent months, the government plans to draw up ways to help boost shipments there including those based on the analysis of the changing imports pattern in China," the ministry said in a statement.
Meanwhile, much progress was made in negotiations of 11th round of negotiations for China-South Korea free trade agreement, held last week in Meishan city of Southwest China's Sichuan Province, the ministry said.
The two sides will hold the next round of talks in July, with detailed schedules and venue to be discussed later.
