South Korea’s trade deficit amounted to an all-time high of US$47.2 billion last year, when it recorded an annual trade deficit for the first time since 2008. Last year, South Korea’s exports set a new record. However, soaring energy prices more than offset the performance.
The Ministry of Trade, Industry and Energy announced on Jan. 1 that last month’s exports totaled US$54.89 billion, down 9.5 percent from a year ago and down for the third consecutive month. Semiconductor exports decreased 29.1 percent while steel, petrochemical and display exports fell 20.9 percent, 23.8 percent and 35.9 percent, respectively.
In December last year, energy imports jumped 27.7 percent and total imports were US$59.68 billion. South Korea posted a trade deficit of US$4.69 billion that month, when it remained in the red for nine months in a row for the first time since May 1997.
Last year, its exports increased 6.1 percent to US$683.9 billion and its average daily exports were US$2.51 billion, above US$2.5 billion for the first time. Semiconductor exports hit an all-time high of US$129.2 billion as in the case of petroleum product (US$63 billion), automobile (US$54.3 billion) and rechargeable battery (US$10 billion). Non-memory chip, electric vehicle and OLED exports set new records as well.
Exports to the United States topped US$100 billion for the first time. Those to the ASEAN region, the United States and the European Union increased 14.8 percent, 14.5 percent and 7.1 percent, respectively. Exports to India jumped 21 percent. Those to the four regions reached the highest levels ever.
Meanwhile, South Korea’s imports totaled US$731.2 billion last year, up 18.9 percent year on year. Crude oil, gas and coal imports accounted for no less than 26.1 percent of the annual imports.
In 2022, exports to China decreased year on year for seven months in a row and decreased 4.4 percent as a whole. This was because the Chinese economy slowed down and semiconductor prices fell in the second half.
Last year’s trade deficit is US$47.2 billion, the largest ever and more than twice the previous high recorded in 1996. The annual deficit is for the first time since 2008, when the deficit was US$13.26 billion.
