South Korean flags fly on skyscrapers and businesses in Seoul’s Gangnam district.
Ann Hermes | Christian Science Monitor | Getty Images
Trade data showed on Wednesday that South Korea’s exports grew faster in December, beating market expectations and ending the year with a record performance, despite looming risks in the year ahead.
Exports from Asia’s fourth-largest economy rose 6.6% year-on-year in December, compared with a 1.4% gain in November. A Reuters poll of economists had forecast a 4.0% increase.
It was the 15th consecutive month that exports have increased on an annual basis and the fastest pace since September, after four consecutive months of slowing due to concerns about changes in U.S. trade policy.
“The administration will work with the private sector to minimize the negative impact of external uncertainties from the incoming U.S. administration and maximize new opportunities,” Trade Secretary Andergen said.
U.S. President-elect Trump has promised to impose high tariffs on imported products from Mexico, Canada and China, three major trading partners. This is expected to affect Korean companies with factories in these countries and put pressure on global trade.
Last year, South Korea’s exports grew by 8.2%, the fastest growth rate in three years. In 2023, they will drop by 7.5%.
China has been South Korea’s largest export market since 2003, with exports to China growing 6.6% to $133 billion, while exports to the United States narrowed the gap, growing 10.5% to $127.8 billion.
In December, exports to the United States grew 5.5%, the fastest since August, with monthly exports hitting a record high of $11.9 billion. Exports to the EU grew 15.1%, the fifth consecutive month of growth, while exports to China rose 8.6%.
Semiconductor exports rose 31.5% last month to US$14.5 billion, also hitting a record high in a single month. However, car sales fell 5.3% due to strikes by major automakers and delays in parts supply caused by heavy snow.
