South Korea tops $700 billion in annual exports for first time

Shipment are stacked at a port in Busan, in this undated file photo. YonhapSEOUL, December 29 (AJP) - South Korea has become the sixth country in the world to surpass US$700 billion in annual exports, achieving the milestone for the first time.

According to the Ministry of Trade, Industry and Energy, preliminary data show that this year's cumulative exports reached $700 billion as of Monday.

The export-dependent country first exceeded $100 billion in annual exports in 1995, then surpassed $200 billion in 2004, $300 billion in 2006, $400 billion in 2008, $500 billion in 2011, $600 billion in 2018, and $700 billion this year, more than seven decades after its founding in 1948.

With the milestone, South Korea became the sixth country to surpass $700 billion in exports, after the U.S. (2000), Germany (2003), China (2005), Japan (2007) and the Netherlands (2018).

The ministry said the milestone was reached despite headwinds from U.S. President Donald Trump's tariff policies and growing protectionism.

It said exports have helped boost economic growth and create jobs through trade surpluses despite South Korea's heavy reliance on energy imports.

Exports fell in the first half of the year amid global economic uncertainties, but monthly exports have set record highs for six straight months since June.

By sector, manufacturing industries led by semiconductors as well as automobiles, ships, and biotechnology drove the growth, while food, beauty products, and electrical equipment emerged as new growth engines.

By region, exports to the U.S. and China have declined, while shipments to ASEAN, the European Union, and Latin America have increased, helping diversify South Korea's export markets.

Foreign direct investment (FDI) is also recovering after declining in the first half, already surpassing last year's record of $34.57 billion, buoyed by increased investment in advanced technologies including artificial intelligence (AI).

The ministry said it will work to maintain this momentum next year by strengthening competitiveness and fostering innovation in manufacturing and other industries.
Kim Seong-seo 기자 biblekim@ajunews.com