K-exports Reach the $700 Billion Mark, Set to Overtake Japan This Year

Last year, South Korea’s exports surged on the back of a super boom in semiconductors, bringing the country to the brink of catching up with Japan. Expectations are now growing that South Korea could surpass Japan for the first time ever this year.
According to the Ministry of Trade, Industry and Resources on the 5th, South Korea’s annual exports reached $709.33 billion last year, surpassing the $700 billion mark for the first time in history.
South Korea’s exports successively broke through $100 billion in 1995, $200 billion in 2004, $300 billion in 2006, $400 billion in 2008, $500 billion in 2011, and $600 billion in 2018.
South Korea has become the world’s sixth country to exceed $700 billion in exports, following the United States of America (USA) in 2000, Germany in 2003, China in 2005, Japan in 2007, and the Netherlands in 2018. Notably, while South Korea was the seventh country to reach $600 billion in exports, it climbed to sixth place at the $700 billion milestone, underscoring how rapidly its exports are growing compared with other major economies.
As South Korea’s annual exports have entered the $700 billion range, the gap with Japan has narrowed to a record low. Japan’s annual exports peaked at $822.6 billion in 2011 and have since trended downward, coming in at $738.34 billion last year. As a result, the export gap between the two countries has shrunk to $29.01 billion.
This trend has become even more pronounced this year.
In January this year, South Korea’s exports reached $65.85 billion, surpassing $60 billion for the first time ever for the month of January. During the same period, Japan’s January exports, compiled by the World Trade Organization (WTO), stood at $58.63 billion, putting South Korea in the lead.
South Korea also outpaced Japan in February exports, and in March it recorded $86.13 billion, skipping over the $70 billion range altogether and entering the $80 billion level in monthly exports for the first time. South Korea is highly likely to stay ahead of Japan in March as well.
South Korea’s exports in the first quarter of this year totaled $219.3 billion, the highest quarterly figure on record. Considering that exports typically gain momentum in the second half of the year, total exports for this year could surpass the government’s target of $740 billion and set a new all-time high for the second consecutive year.
Semiconductors are by far the biggest driver of South Korea’s strong export performance. The semiconductor super cycle that began in earnest in the second half of last year has continued into this year, propelling export growth.
aber@fnnews.com Park Ji-young Reporter