S.Korea's exports fall 5.9 pct in September on auto strikes, Note 7 recall

South Korea's exports fell 5.9 percent last month due to labor strikes in major automakers and Samsung Electronics' recall of its new flagship Galaxy Note 7 smartphone, a government report showed on Saturday.

Exports, which account for about half of the economy, amounted to 40.9 billion U.S. dollars in September, down 5.9 percent from the same month of last year, according to the Ministry of Trade, Industry and Energy (MOTIE).

It was a downturn after rebounding in August for the first time in 20 months as key carmakers, including Hyundai Motor, Kia Motors and GM Korea, went on partial strikes and delayed production and exports.

Samsung's global recall of about 2.5 million Note 7 smartphones also contributed to the export downturn. Some of the phones caught fire while charging due to faulty battery cell.

The ministry said labor strikes among automakers reduced exports by 1.14 billion dollars, or 2.6 percentage points, last month.

Imports dipped 2.3 percent from a year earlier to 33.8 billion dollars in September, sending the trade surplus to 7.1 billion dollars. The trade balance stayed in black for 56 months since February 2012.

(APD)