S. Korea’s exports surge in Dec. ’24

South Korea’s exports grew faster than market expectations in December, capping off a record-breaking year, according to Wednesday’s trade data. However, potential risks remain for the year ahead.

In December, exports from Asia’s fourth-largest economy increased 6.6 per cent compared to 2023. This growth exceeded the 1.4 per cent gain seen in November and exceeded the 4.0 per cent forecast from a Reuters survey of economists.

Exports have been growing in annual terms for 15 months in a row, marking the fastest increase since September. This growth comes after four months where the pace of growth had been slowing due to concerns about changes in US trade policies.

“The government will team up with the private sector to minimise any negative impact from external uncertainty of the incoming US administration and maximise new opportunities,” said Trade Minister Ahn Duk-geun.

US President-elect Trump plans to impose tariffs on imports from Mexico, Canada, and China, which may impact South Korean firms with factories in those countries and global trade.

In December, exports to the United States reached a record monthly value of $11.9 billion, rising 5.5 per cent. Exports to the European Union increased by 15.1 per cent and those to China by 8.6 per cent.

Attribution: Reuters

Subediting: Y.Yasser