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Korea annual exports surpass $700B for first time in 2025, narrowing gap with Japan

Published: 05 Apr. 2026, 17:09

Trade containers are stored in a cargo terminal at Pyeongtaek port in Gyeonggi on March 1. [YONHAP]

Korea’s annual exports topped $700 billion for the first time in 2025, narrowing the export gap with Japan to the $20 billion range.

With the semiconductor supercycle continuing, expectations are growing that Korea could surpass Japan in annual exports for the first time since the Korean government was established in 1948.

Korea’s annual exports reached $709.3 billion in 2025 — the first time annual exports had exceeded $700 billion, according to the Ministry of Trade, Industry and Resources on Sunday.

The gap with Japan also narrowed to striking distance. Japan’s goods exports totaled $738.3 billion in 2025, and the gap between the two countries stood at $29 billion, according to the World Trade Organization.

The difference had exceeded $100 billion as recently as 2021, when it stood at $111.63 billion, but it narrowed to $85 billion in 2023 and $23.4 billion in 2024. In fact, Korea surpassed Japan four times in monthly exports in 2025: May, August, September and December.

That trend has continued this year. Korea’s exports reached $65.8 billion in January, surpassing Japan’s $58.6 billion. In February, Korea’s exports came to $67.3 billion, while Japan’s exports totaled 9.57 trillion yen ($60.1 billion), lower than Korea’s.

Japan’s March export figures have yet to be released, but Korea is widely expected to have maintained its lead. Korea’s March exports reached a record $86.13 billion.

A 3-D-printed miniature model depicting U.S. President Donald Trump and a map showing the Strait of Hormuz are seen in this photo taken on March 26. [REUTERS/YONHAP]

Despite lingering uncertainties, such as the Iran war, industry sources say this year could be the right time for Korea to overtake Japan. Korea continues to benefit from a semiconductor export boom driven by the expansion of AI.

“There are various variables surrounding semiconductors, but we expect the positive trend to continue at least through the first half of the year,” said Kang Gam-chan, the director general for trade and investment at the ministry. If that trend continues, some expect Korea’s total exports this year to exceed the government’s target of $740 billion and hit a record high for a second straight year.

Japan, by contrast, is facing growing pressure on its auto industry, which accounts for 17 percent of its exports, due to high oil prices and the restructuring of global supply chains.

Both countries remain highly dependent on the Middle East, but Japan’s dependence stands at 90 percent, higher than Korea’s 70 percent, making it more vulnerable to instability in the region.

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 AHN HYO-SEONG [[email protected]]