Seoul: South Korea's annual exports surpassed US$700 billion for the first time, making the country the sixth in the world to reach this milestone, government data revealed. The landmark was achieved at 1:03 p.m. on Monday, as per figures from the Ministry of Trade, Industry and Resources and the Korea Customs Service.
According to Yonhap News Agency, South Korea followed the United States, Germany, China, Japan, and the Netherlands in reaching this milestone. The country was previously the seventh to achieve $600 billion in annual exports in 2018 but has now become the sixth nation to hit the $700 billion mark, highlighting a faster pace of export growth compared to other major economies.
The Ministry of Trade, Industry and Resources attributed the robust export performance to strong shipments of semiconductors and key products such as automobiles, ships, and bio-related goods. While shipments to the U.S. and China saw a decline in their share of total exports, there was an increase in the proportion of shipments to other Asian countries, the European Union, and Central and South America, indicating a trend toward market diversification.
Exports by small and medium-sized enterprises reached record highs in both value and the number of companies through September, the ministry reported. Despite facing challenges from U.S. tariff measures and trade protectionism, South Korea managed to transform the situation into an opportunity, demonstrating the resilience of its people and businesses, a ministry official stated.
Earlier in the year, there were concerns that exports would struggle due to tariff measures imposed by the Donald Trump administration. However, after a decline in the first half of the year, exports rebounded sharply from June as market confidence improved following the inauguration of the Lee Jae Myung administration and the easing of uncertainties after a trade agreement with Washington.
The government announced plans to sustain export momentum next year by enhancing the fundamental competitiveness of industries through manufacturing innovation, diversifying export markets and items, and expanding incentives to attract foreign investment to regional areas. Additionally, the government aims to achieve exports of $700 billion and foreign direct investment of more than $35 billion for a second consecutive year.