S. Korea automobile exports saw sharp decline in January, impacted by Lunar New Year holiday

Korea's auto exports lost substantial ground in January owing to fewer working days given the prolonged lunar new year holiday.

Our Choi Soo-hyung covers the latest data.

South Korea's automobile exports saw a sharp decline last month.

Data from the Ministry of Trade, Industry and Energy released on Tuesday shows that the declines were impacted by fewer working days due to the Lunar New Year holiday in the last week of January.

The country's auto exports totaled 4-point-9-9 billion dollars in January – nearly 20 percent down from a year ago.

While this figure fell short of last year's all-time high for the month, it still marks the second-largest January export value on record.

By volume, exports dropped nearly 18 percent, with Hyundai Motor and Kia Motor both seeing double-digit declines.

Hyundai shipped over 85 thousand units, down more than 15 percent, while Kia's exports fell nearly 18 percent to just under 77 thousand.

Among the smaller auto firms, KG Mobility and Renault Korea recorded export growth, while GM Korea saw a decline of nearly 30 percent.

Eco-friendly vehicle exports declined slightly, dropping more than four percent overall.

While hybrid and plug-in hybrid exports surged, demand for electric vehicles weakened with EV shipments plunging by nearly 42 percent.

As well as fewer working days in January, a high base effect from the record-breaking performance last January also played a role.

Following U.S. President Donald Trump's announcement that tariffs could be imposed on automobiles starting in early April, a significant impact is expected.

Although the exact plan has not been revealed yet, it is predicted that any decision will greatly affect South Korea, as more than half of its automobile exports go to the U.S.

The domestic sales volume in January exceeded 105-thousand units, marking a 9-percent decrease compared to the same month last year.

Choi Soo-hyung, Arirang News.