South Korea's Exports Fell 5.5% Last Year but Maintained 7th Place in Export Rankings

Export Growth Rate Ranks 4th Among Major Countries... Maintains 9th Place in Trade Volume

[Image source=Yonhap News]

[Sejong=Asia Economy Reporter Moon Chaeseok] Despite the impact of COVID-19 last year, South Korea performed well by maintaining its position as the 7th largest exporter and 9th largest trading country in the world. The export growth rate ranked 4th among the top 10 major countries. Excluding re-export countries, it was the 2nd best performance.

According to the World Trade Organization (WTO)'s "2020 World Major Countries Trade Trends" released on the 28th, South Korea's export ranking last year remained 7th, the same as the previous year. South Korea's share of total global exports was recorded at 3.1%. This figure had fallen below 3% for the first time in 11 years in 2019 at 2.9%, but recovered to above 3% within a year.

The top 1 to 6 countries were China (share 15.8%), the United States (8.8%), Germany (8.4%), the Netherlands (4.1%), Japan (3.9%), and Hong Kong (3.4%). Among the top 10 exporting countries, the top 5 rankings remained unchanged, but the United Kingdom fell out of the top 10, and Belgium entered the top 10 at 10th place.

South Korea's trade ranking also remained 9th, the same as the previous year. The trade ranking is calculated by combining exports and imports. South Korea's share of global trade last year was 3.0%, matching the record high in 2011.

Exports of the top 10 major countries declined together due to the impact of COVID-19 last year. The number of countries achieving export amounts of 500 billion dollars decreased from 9 (including South Korea) in 2019 to 7 (including South Korea) last year. During the same period, the number of countries achieving trade volumes of 1 trillion dollars decreased from 10 (including South Korea) to 8 (excluding South Korea).

South Korea's annual export growth rate last year was -5.5%, ranking 4th among major countries. China ranked 1st with 3.7%, followed by Hong Kong (2.6%) and the Netherlands (-4.8%) in 2nd and 3rd places. Exports of major countries excluding China and Hong Kong all declined. Eight countries including the Netherlands and South Korea saw export decreases: Germany (-7.3%), Italy (-7.7%), Japan (-9.1%), the United States (-12.9%), the United Kingdom (-14.1%), and France (-14.5%).

Considering that Hong Kong and the Netherlands are re-export countries for China and the European Union (EU), South Korea's export performance is effectively the 2nd best. The re-export shares of Hong Kong and the Netherlands are 89% and 44%, respectively.

Earlier, the WTO forecasted in October last year that the volume of world merchandise trade would increase by 7.2% this year compared to last year. By region, exports and imports in advanced regions such as North America and Europe are expected to recover rapidly, while recovery in Asia, Latin America, the Middle East, and the Commonwealth of Independent States (CIS) is expected to be relatively moderate.

The WTO cited the resurgence of the US-China trade war and the strengthening trend of global protectionism as negative factors limiting the recovery of world trade volume.

This content was produced with the assistance of AI translation services.