The Korea International Trade Association reported that South Korea’s exports totaled $622.4 billion from January to November, compared to Japan’s $642.6 billion. The gap is the smallest since the staggering differences seen in the 1960s, when Japan’s exports vastly overshadowed South Korea’s.
This marks a significant shift from 2010, when the gap stood at $303.6 billion. It gradually decreased to $155.2 billion by 2013, hovered above $100 billion through 2021, and fell to $63.2 billion in 2022.
The shrinking disparity is largely attributed to South Korea’s strong performance in key markets, including the United States, China, and ASEAN nations, which account for 54.9 percent of the country’s exports.
Semiconductors, computers, and IT products have led South Korea’s export surge, buoyed by a recovery in the tech sector. Meanwhile, global demand for South Korean cosmetics and pharmaceuticals has added to the momentum.
“Exports are expected to sustain growth, particularly in semiconductors, although the pace may moderate due to base effects,” the Korea Institute for Industrial Economics and Trade (KIET) said in a statement, projecting a 2.2 percent export growth for 2025.
Japan, ranked fifth in global exports, faces mounting pressure as industries like automotive and shipbuilding encounter increased competition from South Korea and China. Additionally, the relocation of Japanese manufacturing overseas has curbed its export volumes.
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