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KOREA REPORT - JUNE, 2021.

TOPICS.

President Moon said on 7th that 36 mil SKoreans will get at least the first dose of COVID-19 vaccines by Sept, representing 70% of nation's population. In July, government plans to provide vaccine shots in order starting with those their 50s, Moon said, adding the first dose of shots would be completed within the third quarter. This means that the country may reach herd immunity earlier than initial target of Nov.

SKorea's trade surplus came to $4.44 bil in June, marking 14th consecutive month of trade surplus. Exports jumped 39.7% on-year to $54.8 bil, on back of recovery in global business activities. Imports climbed 40.7% to $50.3 bil. Exports of chips came to $11.1 bil, soaring 34.4% on-year. Automobiles also soared 62.5% to reach $4 bil. Exports to the US spiked 51.9% to $8.71 bil and exports to China moved up 14.3% to $13 bil.

SKorea's consumer prices rose 2.4% on-year in June for third straight month, on higher prices of farm and oil products. Core inflation rose 1.2% on-year. Prices of agricultural, livestock and fisheries products rose 10.4% on-year, prices of petroleum products climbed 19.9% on-year and prices of personal services rose 2.5% on-year.

The Korean Big3 have achieved a 76% of their yearly order targets so far this year. KSOE has been awarded 156 newbuilds (including two offshore plants) worth $13.7 bil, reaching 92% of its 2021 order target ($14.9 bil). KSOE has secured 45 LPG carriers, 45 containerships, 30 product chemical tankers, 12 VLCCs, two offshore plants, etc. SHI has won a total of 48 newbuilds worth $5.9 bil including 38 containerships, seven crude carriers, three LNG carriers, etc, achieving 65% of its 2021 order target ($9.1 bil). SHI revised its order goal upwards to $9.1 bil from $7.8 bil against a backdrop of a surge in new ship orders, as well as proposed projects including Qatar's LNG carrier business. DSME, which saw relatively poorer order intakes compared to other two rival companies, won 39 newbuilds worth $5.5 bil, reaching 71.4% of its 2021 order goal ($7.7 bil). Big 3’s current orderbook can keep yards employed for over two years and six months, raising the possibility of super cycle's arrival.

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