S. Korea's Record Exports: Defying Global Challenges

Seoul, South Korea - The Ministry of Trade, Industry, and Energy has released export and import trends for December 2023 and the entire year of 2023.

Why it matters:

Amid the U.S.-China confrontation, the Yoon administration has pursued a policy of increased diplomacy and alliance with the West, including the U.S. and Japan, in contrast to the pro-China diplomacy of the previous Moon administration.

One of the most interesting developments is whether South Korea's trade balance in 2023 will show a trade deficit for the first time since 1992 when South Korea and China established diplomatic relations.

Between the Numbers

Export Performance

Overall export growth: Exports increased 5.1% year-over-year to $57.6 billion in December.
Consecutive Growth: Marked the third straight month of growth despite a 2-day shortfall in fishing days.
Record Sectors: Significant growth in semiconductors (+21.8%) and autos (+17.9%).
Regional highlights: Significant increase in exports to the U.S., surpassing $11 billion for the first time.
Volume and value: Export volume grew by 4.7%, the highest average daily export growth rate (+14.5%) in 18 months.

Top Export Products

Semiconductors: Steady growth, with exports surpassing $10 billion in December.
Automobiles: A positive trend for 18 months, reaching the most significant export volume ever.
Diversified sector growth: Increases in general machinery, home appliances, displays, ships, petrochemicals, and bio-health.
Quarterly performance: Semiconductor exports showed an upward trend from Q1 to Q4 in 2023.

Regional export dynamics

Export markets are shifting: The first time in 20 years, the U.S. surpassed China as South Korea's largest export destination in December.
Electric vehicle exports: Record exports to the U.S., influenced by anti-inflationary legislation.
ASEAN and India: Export growth to ASEAN and India continued for several months.
Exports to China: Despite a slight decline, they remained above $10 billion for five consecutive months.

Imports and Trade Balance

Decline in imports: Imports fell 10.8% in December, mainly due to a decline in energy imports.
Decline in Energy Imports: Significant declines in crude oil, natural gas, and coal imports.
Trade Surplus: Recorded a surplus of $44.8 billion, the largest in three years.
Quarterly Trade Balance: Moved from a deficit in the first quarter to a sizable surplus in the fourth quarter.

What They Say:

"In 2023, despite challenges, we achieved export growth and a trade surplus by October, outpacing East Asian rivals and reducing the trade deficit. The latter half saw higher export volumes,"