South Korea Logs Trade Deficit of 9.97 Billion USD in 2023

The trade deficit amounted to 9.97 billion U.S. dollars in 2023 after recording 47.78 billion dollars in the previous year, according to the Ministry of Trade, Industry and Energy.

Export, which accounts for about half of the export-driven economy, shrank 7.4 percent from a year earlier to 632.69 billion dollars in 2023, marking the first downturn in three years since 2020.

It was attributed to high interest rates in major economies and the global economic slump.

Import retreated 12.1 percent to 642.67 billion dollars last year on the back of lower commodity prices.

The trade balance posted a deficit of 26.3 billion dollars in the first half, but it turned around with a surplus of 16.33 billion dollars in the second half amid the export rebound.

The outbound shipment reduced 12.8 percent in the first quarter, 12.0 percent in the second quarter and 9.7 percent in the third quarter, before rebounding 5.9 percent in the fourth quarter.

Semiconductor export tumbled 23.7 percent over the year to 98.63 billion dollars in 2023, but automotive shipment surged 31.1 percent to hit a new yearly high of 70.87 billion dollars on robust demand for eco-friendly vehicles.

Machinery shipment rose 4.6 percent to 53.46 billion dollars on solid demand from the United States, the European Union (EU) and the Association of Southeast Asian Nations (ASEAN).

Export for oil products and petrochemicals declined in double digits to 52.16 billion dollars and 45.68 billion dollars each due to cheaper global crude oil.

Shipment for steel products and auto parts dwindled in single digit to 35.21 billion dollars and 22.96 billion dollars, while those for display panels and mobile devices shrank in double figures to 18.59 billion dollars and 15.47 billion dollars, respectively.

Export to the United States and the EU gained to reach new highs of 115.72 billion dollars and 68.26 billion dollars each, but shipment to ASEAN diminished 12.5 percent to 109.24 billion dollars last year.

Shipment to Japan and Latin American countries fell in single digit to 29.06 billion dollars and 24.62 billion dollars, but export to the Middle East advanced to 18.81 billion dollars.

In December alone, the country's export increased 5.1 percent to 57.66 billion dollars compared to the same month of the previous year.

Import decreased 10.8 percent to 53.18 billion dollars last month, sending the trade surplus to 4.48 billion dollars.

Chip export jumped 21.8 percent from a year earlier to 11.03 billion dollars in December, keeping an upward trend for the second consecutive month.

Car shipment continued to grow for the 18 straight month to 6.39 billion dollars last month, while machinery export maintained an upward momentum for the ninth month to 4.68 billion dollars.

Oil products export slipped 3.5 percent to 4.51 billion dollars, but petrochemicals shipment went up 3.9 percent to 3.8 billion dollars.

Shipment to the United States soared 20.8 percent to 11.29 billion dollars in December on a yearly basis, but export to the EU plunged 20 percent to 5.03 billion dollars.

Those to ASEAN and Japan gained in single digit to 9.49 billion dollars and 2.52 billion dollars each last month.

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