SEOUL, January 6 (AJP) - South Korea’s export gap between its two largest trading partners, the United States and China, narrowed to a mere $5.23 billion in 2024, marking its lowest level in 21 years, according to data released Monday by the Korea International Trade Association (KITA).
Exports to China, traditionally South Korea’s largest trading partner, rose by 6.6 percent year-on-year to $133.02 billion. Meanwhile, shipments to the United States surged by 10.45 percent to $127.79 billion, continuing a seven-year streak of record-breaking performance.
The shrinking gap highlights a fundamental shift in South Korea's trade landscape. China's weakening domestic demand and its emphasis on self-reliance in intermediate goods have disrupted the historical supply chain relationship between the two nations.
In contrast, South Korean exports to the U.S. have benefited from robust demand for automobiles, semiconductors, and general machinery, which saw annual growth of 8.2 percent, 122.8 percent, and 3.6 percent, respectively, in 2024.
Major South Korean conglomerates have played a pivotal role in this trend, significantly expanding investments in advanced industries like semiconductors, secondary batteries, and electric vehicles within the United States.
This recalibration of South Korea’s trade priorities has been dramatic. In 2018, the export gap between China and the U.S. stood at $89.4 billion. Today, the difference has nearly vanished, signaling a diversification of South Korea’s export markets.
“The United States, with its large consumer market, offers a more diversified export portfolio, spanning consumer goods, IT, machinery, and petrochemicals,” said Chang Sang-sik, director general of the Institute for International Trade at KITA. “Moreover, increased local investments by South Korean firms have stabilized export structures by boosting intermediate goods shipments.”
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