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U.S. overtakes China as top destination for Korea's exports in December

Published: 01 Jan. 2024, 10:51 Updated: 01 Jan. 2024, 13:40

KIM JU-YEON
[email protected]

Pictured is Busan Port and Busan Harbor Bridge on Dec. 29. [NEWS1]

Korea's exports to the United States surpassed those bound for China in December for the first time since June of 2003, as geopolitical conditions affect the trade shift.

Korea's shipments to the United States exceeded $11 billion while exports to China fell 2.9 percent on-year to reach $10.9 billion in December.

Throughout the year, the United States climbed to become the second largest market for Korean goods, beating out Asean countries for the first time since 2005. China remained as the top export destination by year in 2023.

Korea's total exports decreased 7.4 percent on year in 2023 amid the sluggish performance of chips coupled with global economic uncertainties, according to data by the Ministry of Trade, Industry and Energy on Monday.

Outbound shipments stood at $632.6 billion last year, and imports decreased 12.1 percent on year to $642.7 billion in 2023, resulting in a trade deficit of $9.97 billion.

The Industry Ministry attributed the sluggish exports in 2023 to the global monetary tightening moves, coupled with the delayed recovery of the Chinese economy.

Nevertheless, it noted that exports of automobiles remained solid throughout 2023, with outbound shipments of semiconductors also recovering gradually.

For December, monthly exports advanced 5.1 percent on year to $57.6 billion, rising for the third consecutive month.

Exports, a key economic growth engine for Korea, rebounded in October after 13 months of an on-year decline.

Imports moved down 10.8 percent on year last month to $53.1 billion, resulting in a trade surplus of $4.48 billion.

By sector, exports of chips moved up 21.8 percent on year in December, rising for two consecutive months in yet another sign of a rebound.

Outbound shipments of automobiles also gained 17.9 percent, maintaining its growth for 18 consecutive months.

Other gainers included machinery, home appliances and display products.

BY KIM JU-YEON, YONHAP [[email protected]]