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Despite tariffs, Korea still poised to reach government target of $700 billion in exports

Published: 21 Nov. 2025, 15:58 Updated: 23 Nov. 2025, 17:17

Export-bound cars are lined up at Pyeongtaek Port in Gyeonggi on Oct. 28. [YONHAP]

Korea’s exports continued their upward momentum in November, bringing the country within striking distance of surpassing $700 billion in annual exports this year.

Despite uncertainty in global trade conditions including U.S. tariff policies, Korea's strong performances in key sectors such as semiconductors and shipbuilding are helping push exports toward what could become an all-time high.

According to preliminary data released Friday by the Korea Customs Service for the Nov. 1 to 20 period, exports reached $38.5 billion, up 8.2 percent from the same period in 2024 ($35.6 billion). As the number of working days in both years was 15.5, average daily exports also increased by the same rate.

Semiconductors with 26.5 percent and passenger vehicles with 22.9 percent led the gains, each increasing more than 20 percent. Ship exports also rose 2.3 percent. Semiconductor exports alone reached $9.8 billion, accounting for 25.3 percent of total exports — a 3.7 percentage point increase from a year earlier.

Demand for high-value memory chips continues to surge amid expanding investment in AI and data centers, fueling expectations that the semiconductor “supercycle” may last longer than previously anticipated.

New cars for export on a car carrier trailer arrive at a port in Pyeongtaek in Gyeonggi on April 15. [AP/YONHAP]

By contrast, exports of petroleum products decreased by 19.3 percent, and auto parts fell by 8.1 percent. Exports to major markets increased — China by 10.2 percent, the U.S. by 5.7 percent and the European Union by 4.9 percent — while shipments to Vietnam fell by 2.5 percent and those to Japan were down by 3.9 percent.

Imports during the period rose 3.7 percent to $36.1 billion, driven by machinery which comprised 13.6 percent, precision instruments 8.2 percent and passenger vehicles 35.6 percent. Overall, Korea recorded a $2.4 billion trade surplus.

From January to Nov. 20, cumulative exports totaled $617.6 billion, up 2.7 percent from the same period last year with $601.5 billion. Korea’s full-year exports in 2024 were $683.8 billion, with $82.3 billion recorded after Nov. 20.

Export-bound cars are parked at Pyeongtaek Port in Gyeonggi on Oct. 30. [YONHAP]

If Korea maintains a similar pace to last year for the remainder of this year, it is likely that exports will surpass $700 billion, the target that the government announced earlier this year.

Government officials have also expressed cautious optimism about achieving a record performance. Explosive demand for AI-related semiconductors remains a key driver, while recent tariff negotiations with the United States have improved conditions for the auto sector, which had been relatively weak. Through October, auto exports to the U.S. fell 15.9 percent from a year earlier.

Under the agreement, Korea and the United States will reduce the U.S. tariff on Korean-made vehicles from 25 percent to 15 percent. If related legislation to implement the memorandum of understanding (MOU) is introduced this month, the lower tariff could be applied retroactively from November.

Completed Hyundai vehicles await shipment at the export pier near the company’s Ulsan plant on July 31. [YONHAP]

As a result, analysts say some automakers that had delayed shipments due to tariff concerns or considered raising prices may now increase export volumes.

Recording an annual export record despite strong U.S. trade pressure carries symbolic significance, say officials. Semiconductors — long Korea’s defining “killer product” — have been the main driver of export growth, while further diversification into markets such as the EU and Asean is also seen as a positive development.

“We are indeed within range of reaching $700 billion, but we need to monitor conditions carefully until the end,” a Trade Ministry official said. “We will make every effort to maintain export momentum, particularly in semiconductors.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM WON [[email protected]]