Korea's annual exports topped $700 billion for the first time. It came seven years after surpassing $600 billion in 2018. Despite a worsening trade environment, including a tariff shock from the United States, exports of manufacturing, led by semiconductors, rose sharply.
The Ministry of Trade, Industry and Resources and the Korea Customs Service said on the 29th that "as of 1:03 p.m., the cumulative annual export value has provisionally been tallied at $700 billion." With this, Korea became the sixth country in the world to record $700 billion in exports.
A government official said, "Korea was the seventh in the world to reach $600 billion in exports, but the sixth to reach $700 billion," adding, "this is evidence that our exports are growing faster than major global countries."
Exports were sluggish through the first half of the year, but after June they set monthly records for six consecutive months, posting the highest annual performance ever.
Export growth was driven by strong performance in key manufacturing sectors, including semiconductors, automobiles, ships and biotech. In addition, promising items such as consumer goods like K-food and K-beauty and electric machinery emerged as new growth engines. Through the third quarter, both the export value of exporting small and midsize corporations and the number of corporations hit all-time highs.
Export markets also diversified. The shares of the United States and China fell, while the shares of the Association of Southeast Asian Nations (ASEAN), the European Union (EU) and Latin America expanded. From January to November last year, the U.S.-China share in exports was 38.1%, but in the same period this year it declined to 35.7%.
A government official said, "Along with exports, foreign direct investment also posted the highest annual performance on record this year," adding, "next year we will make every effort to achieve $700 billion in exports for a second straight year and more than $35 billion in foreign investment."
To that end, the government plans to continue innovating the trade structure by strengthening industrial competitiveness through manufacturing innovation, diversifying export markets and items and advancing support systems, and expanding local government-centered incentives for foreign investment.