South Korea's Export Growth Amid U.S. Tariffs

Despite facing a 10% basic tariff and additional item-specific tariffs ranging from 25% to 50% from the United States, South Korea's exports saw a significant increase for the second consecutive month in July. The country's total exports reached $60.82 billion, marking a 5.9% rise from the previous year and setting a new record for July exports.

Key Drivers of Export Growth

The growth was primarily driven by semiconductors, automobiles, and ships. Semiconductor exports hit an all-time high for July at $14.71 billion, thanks to rising memory chip prices and demand for high-value-added products. Automobile exports increased by 8.8% despite a 25% U.S. tariff, supported by strong performances in other markets like the EU and Latin America. Ship exports soared by 107.6%, fueled by deliveries of high-value vessels.

Regional Export Performance

Exports grew in six out of South Korea's nine major markets, including ASEAN, the U.S., and the EU. Notably, exports to the U.S. rose by 1.4%, supported by strong demand for semiconductors and cosmetics, despite ongoing tariffs. Exports to ASEAN countries surged by 10.1%, largely due to increased semiconductor shipments. However, exports to China, South Korea's largest market, declined by 3% due to weaker sales in certain sectors.

Government's Stance

Minister Kim Jung-kwan highlighted the favorable conditions created for South Korean companies in the U.S. market following tariff negotiations. The government remains committed to supporting competitiveness and diversifying export markets in the face of global trade challenges.