SEOUL: South Korea witnessed an 8.2 percent increase in exports in 2024, reaching a new annual record, fueled by robust semiconductor shipments, according to data released Wednesday. The country's exports reached $683.8 billion, surpassing the previous record of $683.6 billion set in 2022. Meanwhile, imports declined by 1.6 percent to $632 billion, resulting in a trade surplus of $51.8 billion.
According to Yonhap News Agency, the Ministry of Trade, Industry and Energy reported that eight out of 15 major export sectors saw growth in 2024. Notably, semiconductor exports surged 43.9 percent to $141.9 billion, driven by a strong demand for premium products like high-bandwidth memory chips. This increase occurred despite a general decline in global semiconductor prices. Other tech products also experienced growth, with mobile devices and computers seeing increases of 11 percent and 77 percent, respectively.
Automobile exports, however, saw a slight decline of 0.1 percent to $70.8 billion, attributed to production disruptions from strikes by auto parts makers in the latter half of the year. The biohealth sector emerged as a significant contributor, with exports growing by 13.1 percent to $15.1 billion, largely due to biosimilar products. Ship exports rose 18 percent to $25.6 billion, driven by demand for large container and liquefied natural gas carriers.
By trade destination, exports to China, South Korea's largest trading partner, rose by 6.6 percent to $133 billion, led by demand for chips, petrochemical products, and mobile devices. Shipments to the United States increased by 10.5 percent to $127.8 billion, marking a new annual high for the seventh consecutive year. Exports to Southeast Asia grew by 4.5 percent to $114 billion.
In December alone, exports rose 6.6 percent year-over-year to $61.38 billion, marking the 15th consecutive month of growth. Imports for the month increased by 3.3 percent to $54.8 billion, resulting in a trade surplus of $6.49 billion. The country maintained a trade surplus for 19 consecutive months. In the same month, semiconductor exports reached a new monthly high, jumping 31.5 percent to $14.5 billion.
Other sectors faced challenges; automobile exports fell 5.3 percent to $6 billion due to supply disruptions from severe weather, and petroleum product exports decreased by 12.2 percent to $3.93 billion due to falling global crude prices. However, petrochemical product exports slightly increased by 1.8 percent to $3.86 billion.
By region, December's exports to China rose 8.6 percent to $11.8 billion amid strong chip demand linked to the artificial intelligence boom. Shipments to the United States increased by 5.5 percent to $11.9 billion, driven by strong demand for chips and ships, offsetting weaker exports in automobiles and machinery.
Industry Minister Ahn Duk-geun acknowledged the challenging global environment, including high interest rates, inflation, and geopolitical tensions, while praising the resilience of South Korean exporters. Ahn emphasized the government's commitment to cooperating with the private sector to mitigate potential impacts from overseas uncertainties, particularly with a new U.S. administration's impending arrival.