Seoul: South Korea’s exports to the Association of Southeast Asian Nations (ASEAN) countries are on the rise, helping offset recent drops in shipments to the United States and China amid a global trade war sparked partly by the U.S.’ evolving tariff policies, data showed Sunday.

According to Yonhap News Agency, outbound shipments to the ASEAN region amounted to US$47.88 billion in the January-May period, marking a 4.3 percent increase from the same period last year, based on data compiled by the Korea International Trade Association (KITA). Meanwhile, exports to the U.S. declined by 4.3 percent as the impacts of the Donald Trump administration’s tariff policies took effect, and shipments to China fell by 5 percent.

In a significant development, February saw exports to ASEAN economies reach $9.56 billion, surpassing monthly shipments to China, which stood at $9.5 billion, for the first time in 23 years. This trend continued in March, with shipments to ASEAN hitting $10.26 billion compared to China’s $10.06 billion.

By May, exports to the U.S. had decreased by 8.4 percent year-on-year to $10.05 billion, while those to China contracted by 8.1 percent to $10.4 billion, influenced by the Trump administration’s extensive tariff policies. In contrast, shipments to ASEAN experienced a slight dip of 1.3 percent, totaling $10 billion for the month.

The Korea Trade-Investment Promotion Agency (KOTRA) identified ASEAN countries as favorable export destinations for South Korea this year, considering the global trend to reduce supply chain dependence on China, the rapid growth of the digital economy, and the expansion of middle-class households in the region. Promising export items to these markets include semiconductors, electronics, home appliances, robots, EV battery parts, renewable energy facilities, and others.

Austin Chang, president of the Institute for International Trade under KITA, noted, “Amid the decoupling between the U.S. and China, China is increasingly working to expand its presence in the ASEAN market. ASEAN will become a more important market in the future with the U.S., too, shifting its source of imports from China to ASEAN.”