"This Year’s Exports Expected to Surpass $600 Billion... Forecasting Record High Performance"

KOTRA Expects South Korea's Export Value to Reach Up to $610 Billion... 17-19% Increase Compared to Previous Year

Data provided by KOTRA

[Asia Economy Reporter Kim Heung-soon] KOTRA forecasted on the 1st that South Korea's export volume this year will reach a record high of $600 billion to $610 billion, an increase of 17-19% compared to the same period last year. This projection is based on the comprehensive opinions of buyers and resident trading companies collected through 127 overseas trade offices in 84 countries worldwide.

By product category, exports of information and communication technology (IT) items such as displays, wireless communication devices, and semiconductors are expected to maintain growth due to the surge in demand from the non-face-to-face economy and digital transformation. Traditional export mainstays such as automobiles and petroleum products are also expected to show strong export performance, supported by the recovery of the global economy and import demand.

Additionally, with the eco-friendly trend, the impact of the COVID-19 pandemic, and the establishment of online exports as a new export route, export opportunities for new growth items such as electric vehicles, secondary batteries, bio-health, and cosmetics are expected to steadily expand.

Exports to all regions worldwide are projected to increase by region. In particular, exports to the United States, which declared an infrastructure investment plan worth $1.209 trillion on the 24th of last month, and China, where import expansion is expected due to external openness, are anticipated to rise.

Furthermore, large-scale infrastructure projects promoted by ASEAN and India, as well as digital and eco-friendly policies of the European Union (EU) and Japan, are analyzed as factors that will provide opportunities for the expansion of South Korea's exports.

KOTRA reported that due to the base effect from COVID-19 and the global economic recovery trend, South Korea's exports in the first half of last year achieved a record high (cumulative $280.8 billion as of June 20, up 24.1%), and this favorable trend is expected to continue in the second half.

However, the export growth rate is expected to slow somewhat in the second half due to the diminishing base effect. There is also a possibility that the recovery of production, investment, and consumption may be delayed due to the spread of variant viruses, and risks such as protectionism, sharp rises in raw material prices, inflationary pressures, and interest rate hikes have been analyzed.

Yoo Jung-yeol, President of KOTRA, said, "Despite difficult conditions this year, South Korea's exports turned crisis into opportunity thanks to the economic recovery of major countries and the efforts of our companies. KOTRA will support our companies to sustain the current export momentum as a trade and investment platform for our small and medium-sized enterprises and mid-sized companies."

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