Korea's auto parts exports to US hit record high in 2024
Containers and cargo boxes for exports are lined up at a port in Pyeongtaek, 70 kilometers south of Seoul, Feb. 11. Yonhap
Korea's exports of auto parts to the United States hit a record high last year, data showed Sunday, as experts weigh the potential impact of incoming auto tariffs from the United States.
Exports of automotive parts to the U.S. totaled $8.22 billion in 2024, up from $8.08 billion the previous year, according to data compiled by the Korea Auto Industries Coop. Association.
The figure has been on a steady increase from $6.91 billion in 2021 and $8.03 billion in 2022.
In 2024, shipments to the U.S. accounted for 36.5 percent of the country's total auto parts exports at $22.55 billion, according to the data.
The European Union was the second-largest destination of Korean auto parts, accounting for 17.3 percent of overall exports last year, followed by Mexico with 9.5 percent and China 6.4 percent.
The report comes amid concerns that the Donald Trump administration's plan to impose 25 percent tariffs on all auto imports may seriously dent Korea's exports and auto industry.
"Challenges are inevitable, either directly or indirectly, as (auto parts) are directly related to completed vehicles," an industry official said.
South Korea's auto exports amounted to $70.78 billion last year, with shipments to the U.S. accounting for 49.1 percent of the total.
Still, some experts offered an optimistic view, noting that Korea's auto parts may act as a substitute for those of China as the trade war between the U.S. and China intensifies.
"Additional tariffs will be imposed on major countries, including Korea, but an even stronger 'bombardment of tariffs' will be imposed on China," said Kim Kyung-yoo, a senior researcher at the Korea Institute for Industrial Economics and Trade, in a report.
"With a 60 percent uniform tax imposed on imported Chinese auto parts, we expect some benefits on our part as Chinese goods are substituted with Korean ones," Kim said. (Yonhap)