This Year, South Korea's Trade Ranks 'First' 6th Worldwide... Semiconductor Sweeps Export Tower 1st and 2nd Places

South Korea's Exports Rise from 7th to 6th Globally Last Year
Samsung Electronics and SK Hynix Rank 1st and 2nd

59th Trade Day Export Tower Award Recipients

[Asia Economy Reporter Park Sun-mi] This year, South Korea's trade volume ranked 6th in the world for the first time ever. Although the trade balance showed a deficit, the export volume jumped from 7th place last year to 6th place this year, resulting in an overall two-step rise in total trade volume.

On the 5th, the Korea International Trade Association (KITA) awarded 1,780 companies with the Export Tower, 597 individuals with government trade merit awards, and 80 with the KITA Chairman’s Commendation at the ‘59th Trade Day’ commemorative ceremony. Despite the trade deficit, this year’s export performance was favorable, with the total number of Export Tower awardees increasing by 207 companies from last year to 1,780. The number of companies receiving the 1 million dollar export tower also rose by 19 to 535 compared to last year.

Samsung Electronics received the highest award this year, the 120 billion dollar tower, renewing its record just one year after receiving the 110 billion dollar tower last year. Samsung Electronics currently holds the world’s number one market share in sectors including DRAM, NAND flash, SSD, TV, refrigerators, smartphones, and mobile phones. It has maintained the number one position in the global TV market since 2006 and the global smartphone market share since 2011. Following Samsung Electronics, SK Hynix received the 30 billion dollar tower, highlighting that semiconductor exports led South Korea’s export economy this year.

KITA expects South Korea’s exports this year to increase by 7.1% from the previous year to 690 billion dollars, imports to rise by 19.5% to 735 billion dollars, and the trade balance to show a deficit of 45 billion dollars. The largest export item from January to October this year was semiconductors, with cumulative exports reaching 111.7 billion dollars by October, approaching last year’s total of 128 billion dollars. Export growth rates exceeding 5% were observed in petroleum products (75.6%), automobiles (13.6%), steel (10.9%), semiconductors (8.3%), and display sectors (5.15%), indicating a strong export trend.

Koo Ja-yeol, Chairman of KITA, said in his opening remarks at Trade Day, "Our trade performed remarkably well despite difficult circumstances this year,” adding, “Among the world’s top 10 trading countries, South Korea ranked 5th in export growth rate, with exports exceeding 600 billion dollars for the second consecutive year, reaching an all-time high. The global export ranking is also expected to rise from 7th last year to 6th this year.” He continued, “Imports also increased, moving from 9th to 8th place globally, so our trade volume will jump two ranks from 8th last year to 6th for the first time ever. Considering that our economy ranks within the world’s top 10, achieving the 6th largest trade volume is a remarkable achievement that reaffirms South Korea’s status as a trade powerhouse.”

However, he noted that overcoming the reversal to a trade deficit remains an urgent task despite these achievements. He stated, “The trade deficit is mainly caused by rising energy prices, but there is also an aspect related to the domestic energy overconsumption structure,” and added, “If we improve the energy overconsumption structure and expand energy-saving campaigns, improving the trade deficit will not be difficult.”