"Korea Emerges as One of the Top 3 Non-EU Importers for the EU... Securing Key Markets Like Secondary Batteries Is Crucial"

Publication of Report by Korea International Trade Association International Trade and Commerce Research Institute

South Korea has emerged as one of the top three non-EU importers for the European Union (EU). Experts advised that in response to the new trade order, it is necessary to expand the production base of export-strong items such as secondary batteries, automobiles, and biopharmaceuticals to secure a foothold in the local market.

On the 14th, the Korea International Trade Association's International Trade and Commerce Research Institute published a report titled 'Analysis and Implications of EU Export Market Booming Items' containing these findings.

The report noted that despite the recent global trade slowdown, exports to the EU have been on the rise since 2020. As of April, South Korea ranks third among non-EU importers to the EU (excluding the European region). Although imports from outside the EU27 countries decreased by 8.6% from January to April, South Korea's import volume increased by 10.7%, surpassing Japan and Russia for the first time. While South Korea's cumulative exports until July this year fell by 13.0%, exports to the EU increased by 3.5%, marking an all-time high.

The export-strong items to the EU are ▲secondary batteries ▲biopharmaceuticals ▲automobiles. Among the top 10 imported items from South Korea to the EU from January to June, these three items showed the highest growth rates in import value. Secondary battery exports increased mainly in materials such as cathode materials (107%) and graphite and electrolytes (190%) to countries like Poland and Hungary. However, exports of finished products and parts showed a declining trend. This was influenced by the EU's push for domestic production of secondary batteries.

The import value of biopharmaceuticals increased by 91.3%. Exports of raw materials and finished pharmaceuticals increased in new markets such as Hungary, Belgium, the Netherlands, and Italy. Automobiles saw a 32.6% increase in import value. Electric vehicle exports surged significantly in Germany and France, and parts exports expanded in chassis and tires regardless of vehicle type to Germany, the Czech Republic, and Slovakia.

The report forecasted rapid growth in the EU markets for secondary batteries, automobiles, and biopharmaceuticals. It also projected that domestic companies could expand exports by strategically entering these markets. However, it mentioned the need to consider that the EU trade structure is shifting towards non-economic factors such as environmental issues, human rights, and supply chain stability during market entry.

Kim Nayul, a researcher at the Korea International Trade Association, said, "It is important to respond to the EU's new trade norms by expanding the production base of booming items to secure market leadership," adding, "export competitiveness should be enhanced through diversification of export items and utilization of tariff preferences under the Korea-EU Free Trade Agreement (FTA)."

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