South Korea's exports are widely expected to extend its slump to a 13th month in December, but its declining pace may slow down, on the back of a rebound in global chip prices amid progress in a trade deal between the United States and China, a poll showed Sunday.

The country's exports are estimated to reach $45.9 billion this month, down 4.7 percent from a year earlier, according to the poll conducted on seven local financial organizations by Yonhap Infomax, the financial information service arm of Yonhap News Agency.

The declining pace slowed from the 14.3 percent drop posted in November, which would mark the first time in seven months for the country to post a single-digit fall in its exports.



South Korea's trade surplus is estimated at $3 billion for December, marking 95 straight months in which its exports have exceeded imports.

South Korea's overall slump in outbound shipments over recent months was attributable to weak global prices of chips, which normally take up roughly 15 percent of its combined exports.

In November, exports of semiconductors nose-dived 30.8 percent to $7.39 billion on the delayed recovery in the price of memory chips, along with the falling seasonal demand for tech products.

"South Korea's exports of chips will decrease at a significantly smaller margin in December (compared with previous months)," said Park Sang-hyun, a researcher at Hi Investment & Securities Co.

The improved outlook over the trade negotiation between Washington and Beijing also supported exports of Asia's No. 4 economy, market watchers said.

The US announced that the phase-one trade deal with China is ready for signing in early January.

As for next year, South Korea's exports are expected to start a full-fledged recovery led by the recovery in the global chip, automaking and shipbuilding sectors.

For 2020, the country's exports are anticipated to rise 3.3 percent on-year to $561 billion, the Korea International Trade Association said in its recent report. The figure marks a sharp turnaround from this year's estimated on-year drop of 10.2 percent.

South Korea's exports rose 5.4 percent on-year in 2018. (Yonhap)