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Cars, batteries, instant noodles drive Korea's exports in 2023
President Yoon Suk Yeol, center, claps with the Minister of Trade, Industry and Energy Bang Moon-kyu, right, during an event to celebrate national Trade Day at COEX, Seoul, Tuesday. Courtesy of the President's Office
By Ko Dong-hwan
Outbound shipments to rebound in 2024 on higher global chip demand
Korean exports are sustaining surpluses on the back of strong performances in the automobile, batteries and instant noodles industries, despite high interest rates, geopolitical conflicts and other unfavorable global economic conditions, according to the Ministry of Energy, Industry and Trade, Tuesday.
The evaluation came as the nation marked the 60th National Trade Day by holding an event to congratulate companies, and reflect upon the history of the country's global trade that began in the 1960s.
The government praised the country's overall trade performance amid tricky global conditions, high interest rates, protectionism, regional conflicts and supply chain disruptions. While the challenges slowed down the exports of neighboring manufacturing giants like Japan and China, Korean trade turned a surplus last October for the first time in 13 months, registering $55.1 billion. The trade balance has maintained an upward trend throughout the year and remained in surplus since June, according to the ministry.
The automobile industry registered a record in export performance this year. The chip sector turned a surplus in November thanks to high demand from the global IT industry. Instant noodles, better known as "ramen" here, also surpassed 1 trillion won ($762 million) for the first time.
Exports to the United States and Europe were unprecedentedly high this year as well, validating the country's efforts to diversify its export markets, according to the ministry.
"The rebound we've seen in Korean exports this year should continue the next year and haul our economy," said minister Bang Moon-kyu at COEX where the event was held. "The government and private firms will cooperate to maximize the synergy."
President Yoon Suk Yeol, left, checks a replica of the Republic of Korea Air Force's TA-50 at COEX before attending an event to celebrate Trade Day at the venue in Seoul, Tuesday. Courtesy of the President's Office
President Yoon Suk Yeol joined the event and awarded companies that marked the highest export figures in different industries. At the front were automobile firms. Hyundai Motor Company and Kia were recognized for exporting $31 billion and $23.5 billion, respectively. Woowon Technology, a small-to-medium-sized company, registered $100 million in exports with its automation technology for electric vehicles (EV).
The trade performances of Semiconductor firms overseas also proved to have broadened key export items compared to the past, the government said. Notable figures came from companies specializing in new competing markets like fabless chip designing, packaging and testing, loosening the country's traditional reliance on DRAM and NAND.
The rising global EV market has boosted the exports of Korean firms developing and manufacturing rechargeable batteries, including those making cathode and anode materials, logging between $3 billion and $6 billion in exports this year.
The ministry also awarded food production companies in food production, traffic software, clothing, defense, farming technology, content development and gaming for their export performances.
"Since we began orienting local industrialization on export in the 1960s, heavy and chemical industries led our economy in the 1970s and IT and technology industries started selling abroad in the 2000s," said an official from the ministry.
The event exhibited key export items throughout history, from wigs and toupees in the 1960s to the Hyundai Pony –the country's first export automobile – CDMA (code division multiple access) mobile phone, 1 gigabyte DRAM, LNG carrier, a scale model of a nuclear power plant, ramen and K-pop.