Won-based export settlements snap 5-year decline in 2023

The proportion of South Korean exports settled using the country's currency rose last year to snap the decline for the fifth straight year, central bank data showed Thursday. The use of the won accounted for 2.8 percent of all export settlements last year, compared with 2.3 percent the previous year, according to the data from the Bank of Korea (BOK). It marked the first rise since 2017. The central bank said won-based settlements of exports of autos and machineries increased last year. South Korea's exports dipped 7.4 percent last year amid weak demand for chips coupled with global economic uncertainties, and imports decreased 12.1 percent. The U.S. dollar was the dominant currency used to settle South Korean exports last year, taking up 83.1 percent of overall export settlements, down from 85 percent in 2022. The fall in the dollar settlement proportion came as exports of semiconductors are usually settled in the U.S. dollar, the BOK said. Outbound shipments of chips fell nearly 24 percent on-year last year. The use of the euro for export settlements accounted for 6.8 percent of total export settlements last year, up from the previous year's 5.8 percent, while that for the Japanese yen stood at 2.3 percent last year, unchanged from the previous year. The Chinese yuan made up 1.7 percent of total export settlements last year, up from 1.6 percent the previous year. Meanwhile, the share of won-based import settlements stood at 6.7 percent last year, up 0.6 percentage point from the previous year. The use of the U.S. dollar took up 80.6 percent of the total, down from 82.8 percent a year ago, according to the BOK. Source: Yonhap News Agency