In April, Korea’s exports grew for the seventh consecutive month since turning positive in October 2023 as demand for semiconductors and automobiles recovered, with Korea’s exports to the United States hitting a record high.

According to the Ministry of Trade, Industry and Energy (MOTIE) on May 1, exports totaled US$56.26 billion in April, up 13.8 percent year on year. The average daily export value based on the number of working days was also up 11.3 percent year on year to US$2.45 billion. It is also an encouraging fact that exports of 13 of Korea’s 15 main export items increased in April.  

Information and communication (IT) items took the lead in Korea’s exports. Exports of semiconductors, Korea’s largest export item, reached US$9.96 billion, the second-highest April export value on record. This was up 56.1 percent year on year and marked the sixth consecutive month of growth.

Displays, computers, and wireless communication devices continued the same trend for the second consecutive month, following the growth of Korea’s exports in all categories in 24 months in March. Exports of displays (16.3 percent) and computers (76.2 percent) increased for the ninth and fourth consecutive months, respectively, while exports of wireless communication devices (11.4 percent) increased for the second consecutive month.

Automotive exports which were negative in February and March due to slowing growth in electric vehicle sales in the world turned positive in April, rising 10.3 percent year on year to US$6.79 billion, the highest figure ever recorded. Biotech and health products exports (21.3 percent) posted their first double-digit growth rate of 2024.

What’s more, exports of 13 of Korea’s 15 major export items increased, including petroleum products (19.0 percent), petrochemicals (12.3 percent), electric home appliances (9.4 percent), ships (5.6 percent), auto parts (2.9 percent), textiles (1.7 percent), and general machinery (1.5 percent).

By region, Korea’s exports to both China and the United States increased. The two countries are the two largest importers of Korean goods in the world. Exports to the United States reached a record high of US$11.4 billion, up 24.3 percent from 2023, and continued to grow for the ninth consecutive month. Exports to China increased 9.9 percent from 2023 to US$10.5 billion, marking the second consecutive month that exports to the country exceeded US$10 billion.

While China had been Korea’s largest export market, exports to the United States surpassed those to China in December. It marked the first time in 20 years and six months since June 2003. In January of this year, exports to the United States surpassed those to China, but the United States again became the largest export destination in February and March, and the trend continued in April.

An increase in exports to the United States was driven by continued sales of automobiles and auto parts, while semiconductor and computer exports inflated 36.44 percent and 176.4 percent year-on-year, respectively, in April.

Some analysts say this is related to an increase in Korean companies’ investment in key industries in the United States such as semiconductors and batteries. As the U.S. government has been rebuilding its high-tech industry ecosystems through the US Chips Act and tax breaks for advanced industries in the Inflation Reduction Act (IRA) to keep China in check, Korean companies have been ramping up their investments by laying out plans to build factories in America.  

In April, Korea’s imports totaled US$54.73 billion, up 5.4 percent from a year earlier. It was the first increase in imports in 14 months since February 2023. Energy imports including imports of crude oil (17.8 percent) and gas (21.9 percent) rose due to higher refinery utilization rates and increased demand for gas for power generation and industrial use.

Korea’s trade balance was a surplus of US$1.53 billion. The monthly trade balance has been in surplus for 11 consecutive months since June 2023. The cumulative trade balance in the January-April period of this year was US$10.6 billion in surplus, the largest in five years after US$12.6 billion in the same period of 2019.

Korea’s cumulative trade balance through April reached US$10.6 billion, surpassing the deficit for the entire year (US$10.3 billion). It was the largest surplus in five years.