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Korea's trade balance recorded a deficit in July.

This year's cumulative deficit is the largest since related statistics were compiled, and the main reason is that import prices of energy and raw materials have risen, but when looking at the trade balance with China, an important trading partner, an analysis shows that a warning light has also been turned on for Korea's export competitiveness. 



This is reporter Jang Hoon-kyung.



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Korea ranked first in China's import market share for seven consecutive years until 2019, but has been falling behind Taiwan since 2020.



In particular, among China's top 10 importers, Korea's share fell the most, even more significantly than the US, which is in the midst of a trade dispute.



The trade balance with China was negative for the third straight month with a deficit of $570 million last month.



This is the first time since the establishment of diplomatic ties between Korea and China in 1992.



[Moon Dong-min / Head of Trade and Investment Department, Ministry of Industry and Trade: (Exports to the public) growth is slowing down.



This is the result of a combination of China

's slowing economic growth, regional lockdowns caused by Corona, and the growth of Chinese industry supported by the Chinese government.]

As a result, the overall trade balance continued to run in the red for the fourth straight month.



Exports last month recorded the highest level in July, but imports of the three major energy sources - oil, gas and coal - nearly doubled from a year ago, leading the trade deficit.



Export growth has also fallen to single digits, raising concerns about a slowdown in growth.



That is why it is argued that all efforts should be made to secure advanced industrial technology other than semiconductors such as robots and the environment.



[Yang Pyong-seop/Senior Research Fellow, Institute for Foreign Economic Policy: Such product groups can strengthen our export power by diversifying markets not only in the Chinese market, but also in Southeast Asian and advanced markets.

.]



The government has announced that it will announce comprehensive export measures this month, including regulatory improvement and specialized support for each industry.



(Video coverage: Kim Min-cheol, video editing: Nam Il)