South Korea Export Growth Rebounds in December, But Risks Loom

Reuters

15:38 JST, January 1, 2025

SEOUL (Reuters) – South Korea’s exports grew at a faster pace in December, beating market expectations, and ended the year with a record performance, trade data showed on Wednesday, though risks loom in the year ahead.

Exports by Asia’s fourth-largest economy rose 6.6% in December from a year earlier, compared with a gain of 1.4% in November and 4.0% forecast in a Reuters

survey

of economists.

It was the 15th consecutive month exports grew in annual terms and the fastest increase since September, after four straight months of slowing amid worries over U.S. trade policy changes.

“The government will team up with the private sector to minimize any negative impact from external uncertainty of the incoming U.S. administration and maximize new opportunities,” said Trade Minister Ahn Duk-geun.

U.S. President-elect Donald Trump has pledged to impose big tariffs on imports from three major trading partners – Mexico, Canada and China – which are expected to affect South Korean firms running factories in those countries and weigh on global trade.

Last year, South Korea’s exports rose 8.2%, the fastest in three years, after a fall of 7.5% in 2023. Its total sales of $683.8 billion for the year was a record high.

Shipments to China, which has been South Korea’s biggest export market since 2003, rose 6.6% to $133.0 billion, while U.S.-bound shipments narrowed the gap by rising 10.5% to $127.8 billion.

In December, exports to the United States rose 5.5%, the fastest since August, and posted a record monthly value of $11.9 billion. Exports to the European Union jumped 15.1%, extending gains to a fifth month, while those to China rose 8.6%.

Exports of semiconductors rose 31.5% last month to $14.5 billion, also a monthly record high, but car sales fell 5.3% due to strikes at major automakers and delays in parts supplies due to heavy snow.