Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Korea on verge of closing export gap with Japan
Cars await shipment overseas at a port in Pyeongtaek, Gyeonggi Province, Monday. Yonhap
By Yi Whan-woo
Korea is rapidly closing the export gap with Japan as the difference shrinks to record lows, fueling optimism that Korea can catch up to their neighbor’s export totals for the first time, industry officials said Thursday.
Citing data from the Korea International Trade Association, Japan Tariff Association and International Monetary Fund, officials said that Korea’s exports totaled $579.1 billion from January to October, compared with Japan’s $606.1 billion.
The $27 billion gap represents a dramatic reduction from the full-year difference of $122.4 billion in 2024, thanks to Korea’s robust exports of memory chips amid the global artificial intelligence (AI) revolution.
“The interim 2025 figure is especially noteworthy, as it is a record low, with two months remaining to watch for further developments,” an industry official said.
The official noted that Korea has steadily narrowed its export gap with Japan, from $128.8 billion in 2020 to $85.1 billion in 2023, marking the first time the gap fell below $100 billion.
Korea had closed the margin to $3.2 billion in the first half of last year, raising hopes of overtaking Japan in exports, but global market instability and domestic challenges slowed momentum and widened the gap to $122.4 billion by year-end.
“Under these circumstances, Korea could achieve (the milestone) for the first time, and even surpass Japan, with a final sprint through the end of the year being crucial,” another industry official said.
Officials described this year’s export trend as “even better than the first half of 2024,” pointing to the ongoing semiconductor supercycle as a key driver.
As Korea’s largest export item, semiconductors are experiencing unusually strong demand and high prices due to the AI industry boom.
In November alone, semiconductor exports rose 38.6 percent year-on-year to a record $17.26 billion, surpassing the previous high of $16.61 billion from September.
Another key export item, automobiles, also performed well, as internal combustion and hybrid vehicles rose 13.7 percent to $6.41 billion in November.