SOUTH Korea exported more goods to the us than to China last year for the first time in almost two decades, underlining shifting trade patterns as Washington draws more allies into its supply chains and Beijing boosts its manufacturing self-reliance.
Goods exports from South Korea to China fell almost 10 per cent to US$122 billion between 2021 and 2022, according to data released by the Bank of Korea this week. By contrast goods exports to the US increased by more than 22 per cent over the same period to $139 billion, according to London's Financial Times.
It is the first time since 2004 that South Korea - the world's tenth largest economy with companies such as Samsung that are a bellwether of global trade - has exported more goods to the US than to China.
The figures reflect a surge in US demand for Korean cars, while exports of Korean semiconductors to China have slumped amid a slowdown in the global memory chip market.
The US is the only one of South Korea's top 10 export partners to which exports have grown over the past five years. Led by battery makers LG Energy Solution, SK On and Samsung SDI, and solar company Hanwha Q-Cells, South Korean companies have also been among the largest foreign investors in the US semiconductor and clean tech sectors.
By contrast China is waning in importance. A study published this month by the Korea International Trade Association showed that since 2021, the share of Korean exports going to China has declined in sectors including petroleum products, petrochemicals, steel and auto parts.
In the first three months of 2023, Korean exports to China fell below 20 per cent of the total for the first time since 2005, according to the trade association.
Analysts at the Korea Centre for International Finance have attributed the structural decline in Korean exports to China to Beijing's 'Made in China 2025' strategy to use subsidies to boost its manufacturing of machinery and precision tools.
'Many Chinese business are manufacturing intermediate goods, which we mainly export,' said Rhee Chang-yong, the governor of the Bank of Korea. 'The decade-long support from the Chinese economic boom has disappeared.'
SeaNews Turkey
Goods exports from South Korea to China fell almost 10 per cent to US$122 billion between 2021 and 2022, according to data released by the Bank of Korea this week. By contrast goods exports to the US increased by more than 22 per cent over the same period to $139 billion, according to London's Financial Times.
It is the first time since 2004 that South Korea - the world's tenth largest economy with companies such as Samsung that are a bellwether of global trade - has exported more goods to the US than to China.
The figures reflect a surge in US demand for Korean cars, while exports of Korean semiconductors to China have slumped amid a slowdown in the global memory chip market.
The US is the only one of South Korea's top 10 export partners to which exports have grown over the past five years. Led by battery makers LG Energy Solution, SK On and Samsung SDI, and solar company Hanwha Q-Cells, South Korean companies have also been among the largest foreign investors in the US semiconductor and clean tech sectors.
By contrast China is waning in importance. A study published this month by the Korea International Trade Association showed that since 2021, the share of Korean exports going to China has declined in sectors including petroleum products, petrochemicals, steel and auto parts.
In the first three months of 2023, Korean exports to China fell below 20 per cent of the total for the first time since 2005, according to the trade association.
Analysts at the Korea Centre for International Finance have attributed the structural decline in Korean exports to China to Beijing's 'Made in China 2025' strategy to use subsidies to boost its manufacturing of machinery and precision tools.
'Many Chinese business are manufacturing intermediate goods, which we mainly export,' said Rhee Chang-yong, the governor of the Bank of Korea. 'The decade-long support from the Chinese economic boom has disappeared.'
SeaNews Turkey