Korea's exports topped $700 billion for the first time last year, sharply narrowing the gap with Japan. If the semiconductor upcycle continues, there is talk that Korea could overtake Japan on an annual basis this year.
According to the Ministry of Trade, Industry and Resources on Apr. 5, Korea's annual exports last year totaled $709.33 billion. Last year was the first time annual exports surpassed $700 billion.
Korea's exports rose to a new tier seven years after surpassing $600 billion in 2018. The semiconductor supercycle that continued from the second half of last year drove the strong export performance.
Japan's exports last year came to $738.34 billion. The gap between the two countries was $29.01 billion.
By month, there were also many cases where Korea outpaced Japan. Korea's monthly exports exceeded Japan's four times—May, Aug., Sept., and Dec. last year.
This trend has continued into this year. In January, Korea's exports were $65.85 billion, outpacing Japan's $58.63 billion, and a similar pattern appeared in February.
In March, Korea's monthly exports topped $80 billion for the first time on record. Although Japan's March export figures have not yet been released, there is speculation that Korea likely maintained the upper hand.
Meanwhile, the rise in oil prices due to the Middle East war is also raising expectations that Korea's exports could overtake Japan's this year. Japan relies on the Middle East for more than 90% of its crude oil imports. Korea's dependence on Middle Eastern crude is 70%, leading to the assessment that Japan is more sensitive than Korea to energy price fluctuations.