'One Year Since Ukraine Invasion' Depressed Korea-Russia Trade... Twice the Global Average Decline

2022 South Korea-Russia Trade Down 22.6%
Twice the 11.4% Average Decline Among 36 Major Countries

[Asia Economy Reporter Moon Chaeseok] It has been revealed that South Korea's trade with Russia decreased by about twice as much as other major countries during the one year following the Russia-Ukraine war.

According to data from the Korea International Trade Association's International Trade and Commerce Research Institute on the 21st, South Korea's trade volume with Russia (exports and imports) last year was $21.15 billion (approximately 27.41 trillion KRW), showing a 22.6% decrease compared to the previous year. This decline was about twice as much as the average 11.4% decrease among 36 major Russian trading partner countries.

The decrease was larger than that of Taiwan (-0.3%), Japan (-11.1%), Poland (-18.1%), and Germany (-21.0%). However, it was smaller than the decreases seen in the United Kingdom (-66.9%) and the United States (-55.2%).

Countries such as China, India, T?rkiye, and Brazil appeared to have benefited from the war. During this period, India's trade with Russia increased by 237%. Italy (49.2%), Brazil (33.7%), and China (29.2%) also saw increases.

South Korea's exports to Russia decreased by 36.6%. This decline was smaller than that of the United States (-73.2%), the United Kingdom (-63.7%), and Germany (-49.7%). It was similar to Japan (-41.4%) and Taiwan (-37.2%). The decrease in automobile and automobile parts exports accounted for 70.4% of the reduction in exports to Russia.

Imports decreased by 14.6%. This decline was smaller than that of the United Kingdom (-67.4%) and the United States (-51.3%). Countries with increased imports from Russia include the European Union (EU), India (337.6%), and China (43.2%). These are countries that depend on Russian energy or maintain friendly relations with Russia.

Notably, while South Korea's major exports to Russia, such as automobiles and parts, sharply declined, China's exports increased. China also increased exports of tires, excavators, tractors, plastics, and synthetic resins in addition to cars and parts.

Regarding this, the Korea International Trade Association analyzed that "China has replaced South Korea and Germany in manufacturing goods exports."

The war is estimated to have reduced the global economic growth rate by 1 percentage point. The global real gross domestic product (GDP) growth rate was expected to be 4.4% before the Russia-Ukraine war broke out in February last year. The International Monetary Fund (IMF) estimate this month is 3.4%. South Korea's growth rate fell by 0.4 percentage points.

According to the World Trade Organization (WTO) analysis, the growth rate of trade volume is estimated at 3.5%, which is 1.2 percentage points lower than the pre-war forecast of 4.7%.

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