"First Half Consumer Goods Exports Reach Highest Since 2009... Automobiles 69%"

The Largest Import and Export Country for Consumer Goods in Our Country is the United States

In the first half of the year, consumer goods accounted for 16% of South Korea's exports, marking the highest level since 2009. While automobile items made up 69.8% of total consumer goods exports, exports of consumer goods increased mainly in the US region. Although this trend has positive aspects, there is advice that export diversification is necessary.

[Image source=Yonhap News]

The Korea International Trade Association's Institute for International Trade and Commerce published a report titled 'Recent Trends and Implications of Consumer Goods Exports' on the 17th.

As of last year, South Korea ranked 6th in total exports worldwide, but consumer goods exports were only 17th. Nevertheless, due to the strong performance of automobile exports and the contraction of intermediate goods exports, consumer goods accounted for 16% of total exports as of June, the highest since 2009.

As of last year, the world's largest importers of consumer goods were the United States, the European Union (EU), and China. Developed countries accounted for most of the top 10 consumer goods importers. The United States, the world's largest consumer market, imported 1.7 times more consumer goods than the EU, which ranked second. Among these, automobile imports accounted for a large proportion.

The EU had many member countries such as Germany (3rd), France (6th), Italy (7th), and the Netherlands (8th) among the top 10 importers. China saw a decline in imports last year due to the impact of COVID-19 lockdown measures and economic recession. The ASEAN region grew from 12th in the world in 2018 to 10th last year, showing double-digit import growth for two consecutive years since 2021.

Domestic consumer goods exports have been on the rise since 2021. Last year, they reached a record high of $81 billion. This was driven by a more than 30% increase in eco-friendly vehicle exports, leading the strong performance of consumer goods exports. The share of automobiles in total consumer goods exports increased to 63.8% last year and 69.8% in the first half of this year.

Cosmetics had been declining due to reduced exports to the key market of China, but in the first half of this year, exports increased by 1.7% compared to the same period last year, showing some recovery. Growth continued in some processed foods such as ramen and juices, as well as in pet food and golf products, which have high potential.

The largest export destination for South Korean consumer goods is the United States. Although consumer goods exports to most countries decreased in the first half of the year due to economic slowdown, exports to the US continued to increase. China ranks second in domestic consumer goods exports, but total consumer goods exports have declined since last year due to sluggish cosmetics exports.

Exports to the ASEAN region, the fourth largest consumer goods export market, significantly decreased in the first half of the year. However, since it is the main market for 8 out of the top 10 consumer goods export items excluding automobiles, export expansion is expected when the economy recovers.

Kim Kkotbyeol, a senior researcher at the Korea International Trade Association, said, "It is positive that recent consumer goods exports are increasing centered on eco-friendly vehicles," but pointed out that "there is high dependence on automobiles, which account for 60% of total consumer goods exports, and on the US market, while exports to China are sluggish due to economic recession and preference for domestic products." She added, "It is necessary to discover high-potential items and focus on entering promising markets such as ASEAN."