March Auto Exports Surpass $6 Billion for the First Time Ever in a Month

Ministry of Trade, Industry and Energy March Export-Import Trends Announcement
Among 15 Major Export Items, Only Cars and Secondary Batteries Increased
Domestic SUVs Popular Overseas... Impact of Eased Car Semiconductor Supply Also Noted

In March, automobile exports surpassed $6 billion for the first time ever in a single month. Exports of secondary batteries used in electric vehicles also recorded the highest monthly export value for March.

On the 1st, the Ministry of Trade, Industry and Energy announced the 'March 2023 Export-Import Trends' report containing this information. South Korea's automobile export value in March reached $6.52 billion, exceeding $6 billion in a single month for the first time in history. This figure represents a 64.2% increase compared to the same month last year. The previous highest monthly automobile export amount was $5.6 billion in February 2023.

South Korea's monthly automobile export value has continuously exceeded $5 billion since November 2022, when it recorded $5.37 billion.

This strong automobile export performance is attributed to the increase in exports of eco-friendly vehicles, which have higher export prices. Recently, domestically produced new sports utility vehicles (SUVs) such as Hyundai Kona, Kia Niro, and Korea GM Trailblazer have gained significant popularity overseas. Since the beginning of this year, the supply of automotive semiconductors has also eased, allowing domestic complete vehicle factories to maximize production capacity. It is analyzed that the previously stagnant vehicle waiting demand is being resolved all at once.

Exports of secondary batteries used in electric vehicles also increased. In March, South Korea's secondary battery export value was $870 million, a 1% increase compared to the same month last year. Among South Korea's top 15 major export items, only automobiles and secondary batteries showed an increase in export value in March compared to the previous year. This was largely due to the growing global demand for electric vehicles and the strong sales of global electric vehicle models equipped with batteries from Korean companies.

Korea GM Trailblazer

On the other hand, semiconductor exports, which have been a core pillar of South Korea's exports, are on the decline. In March, semiconductor exports recorded $8.6 billion, down 34.5% compared to the same month last year. This was due to weak market demand and a drop in prices of Korea's main products, DRAM and NAND flash. An official from the Ministry of Trade, Industry and Energy stated, "It is expected that the semiconductor industry will not improve rapidly in the short term, but from the third quarter, demand is expected to exceed supply, leading to an improvement in the industry outlook."