From 2022 to 2023, South Korea’s overall spending on imported products dropped by -12.1% from $731.4 billion.
Based on the average exchange rate for 2023, the South Korean won has depreciated by -12% against the US dollar since 2019 and diluted by -1.1% from 2022 to 2023. The Republic of South Korea’s weaker local currency made South Korean imports paid for in stronger US dollars relatively more expensive when converted starting from the won.
Domestically, South Korean inflation in terms of its average consumer prices rose 3.419% in 2023 down from an average 5.088% for the prior year.
Best Customers for South Korean Exports
The latest available country-specific data shows that 71.7% of products imported into South Korea was bought by importers in: mainland China (22.2% of the South Korean total), United States of America (11.2%), Japan (7.4%), Australia (5.1%), Saudi Arabia (5.11%), Vietnam (4%), Taiwan (3.8%), Germany (3.7%), United Arab Emirates (2.6%), Malaysia (2.4%), Qatar (2.3%) and Indonesia (1.9%).
From a continental perspective, over three-fifths (62%) of South Korea’s total imports by value in 2023 was purchased from fellow Asian countries. Trade partners in Europe supplied 13.7% of South Korean import purchases while another 13.4% worth originated from North America.
Smaller percentages came from providers in Oceania (5.6%) led by Australia, Latin America (3.4%) excluding Mexico but including the Caribbean, then Africa (1.9%).
Given South Korea’s population of 51.6 million people, its total $642.6 billion worth of imports during 2023 translates to about $12,500 in yearly product demand from every person in the east Asian country. That per-capita amount represents a downturn compared to the average $14,200 one year earlier in 2022.
South Korea’s Top 10 Imports
The following product categories represent the highest dollar value in South Korea’s import purchases during 2023. Also shown is the percentage share each product category represents in terms of overall imports into South Korea.
- Mineral fuels including oil: US$171.4 billion (26.7% of total imports)
- Electrical machinery, equipment: $119.5 billion (18.6%)
- Machinery including computers: $63.1 billion (9.8%)
- Vehicles: $22.1 billion (3.4%)
- Optical, technical, medical apparatus: $22 billion (3.4%)
- Inorganic chemicals: $21.5 billion (3.3%)
- Ores, slag, ash: $19.7 billion (3.1%)
- Iron, steel: $16.5 billion (2.6%)
- Organic chemicals: $13.6 billion (2.1%)
- Plastics, plastic articles: $12.7 billion (2%)
South Korea’s top 10 imports generated three-quarters (75%) of the overall value of its product purchases from other countries during 2023.
Imported inorganic chemicals drove South Korea’s greatest spending increase, up a modest 7.5% from 2022.
Also posting gains were South Korean imports of vehicles up by 2.2%.
The severest declines for the above-listed import categories was the -15.7% setback for imported organic chemicals, the -13% reduction for imports of iron and steel, and the -15.1% drop for the ores, slag and ash product grouping. For an example of the latter category, South Korea’s purchases of imported copper ores and concentrates retreated by -11.4% from 2022.
Please note that the results listed above are at the 2-digit Harmonized Tariff System code level.
Sharpening our focus to the more detailed 4-digit Harmonized Tariff System code level, South Korea’s most valuable imported products are crude oil, electronic integrated circuits and microassemblies, petroleum gases, processed petroleum oils, and coal including solid fuels made from coal. Collectively, that leading cohort represents 34.6% of South Korean total spending on imported goods for 2023.
Information presented under the sections below is also at the more granular 4-digit level.
South Korea’s Main Mineral Fuels Imports
South Korean importers spent the most on the following 10 subcategories of mineral fuels-related products during 2023.
- Crude oil: US$86.2 billion (down -18.7% from 2022)
- Petroleum gases: $41.2 billion (down -27.4%)
- Processed petroleum oils: $22.9 billion (down -12.9%)
- Coal, solid fuels made from coal: $20.1 billion (down -28.7%)
- Coal tar oils (high temperature distillation): $689.4 million (down -29.2%)
- Petroleum oil residues: $95.5 million (down -50.1%)
- Coke, semi-coke: $86.9 million (down -43%)
- Distilled tar: $61.3 million (up 31.1%)
- Petroleum jelly, mineral waxes: $41.3 million (down -8.9%)
- Tar pitch, coke: $20.8 million (up 47.5%)
Among these import subcategories, South Korea’s purchases of tar pitch or coke (up 47.5%) and distilled tar (up 31.1%) grew from 2022 to 2023.
These amounts and the percentage changes within parenthesis clearly show where the strongest demand lies for different types of imported fuel among Korean businesses and consumers.
South Korea’s Main Electronics Imports
In 2023, South Korean importers spent the most on the following 10 subcategories of electronics products.
- Integrated circuits/microassemblies: US$51.7 billion (down -17.2% from 2022)
- Phone system devices: $11 billion (down -11.6%)
- Electric storage batteries: $8.8 billion (up 45%)
- Solar power diodes/semi-conductors: $5.5 billion (down -8.3%)
- Insulated wire/cable: $4.4 billion (up 9.4%)
- Electrical converters/power units: $3.7 billion (up 9.6%)
- Electric motors, generators: $3.4 billion (down -22.6%)
- Unrecorded sound media: $2.9 billion (down -17.8%)
- Printed circuits: $2.9 billion (down -19.6%)
- Flat panel displays: $2.8 billion (down -0.8%)
Among these import subcategories, South Korea’s purchases of electric storage batteries (up 45%), electrical converters or power units (up 9.6%) and insulated wire or cable (up 9.4%) grew from 2022 to 2023.
These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported electronics among Korean businesses and consumers.
South Korea’s Main Machinery Imports
In 2023, South Korean importers spent the most on the following 10 subcategories of machinery including computers.
- Machinery for making semi-conductors: US$17.3 billion (down -13.9% from 2022)
- Computers, optical readers: $7.5 billion (down -21.6%)
- Computer parts, accessories: $5 billion (down -19.6%)
- Turbo-jets: $3.1 billion (up 70.2%)
- Air or vacuum pumps: $3 billion (down -0.7%)
- Taps, valves, similar appliances: $2.7 billion (down -5.6%)
- Miscellaneous machinery: $2.2 billion (down -1.6%)
- Centrifuges, filters and purifiers: $1.74 billion (down -6.5%)
- Liquid pumps and elevators: $1.67 billion (up 5%)
- Transmission shafts, gears, clutches: $1.4 billion (up 2.6%)
Among these import subcategories, South Korea’s purchases of turbo-jets (up 70.2%), liquid pumps and elevators (up 5%) then transmission shafts, gears and clutches (up 2.6%) grew from 2022 to 2023.
These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported machinery among Korean businesses and consumers.
South Korea’s Main Vehicles Imports
In 2023, South Korean importers spent the most on the following 10 subcategories of imported vehicles.
- Cars: US$14.5 billion (up 3.3% from 2022)
- Automobile parts/accessories: $5.1 billion (up 1.9%)
- Trucks: $571.2 million (down -9%)
- Motorcycles: $452.9 million (down -23.7%)
- Tractors: $430.2 million (up 18.5%)
- Public-transport vehicles: $245.1 million (up 65.9%)
- Trailers: $189.5 million (down -23.7%)
- Bicycles, other non-motorized cycles: $165.9 million (down -21%)
- Motorcycle parts/accessories: $134.3 million (down -23.5%)
- Armored vehicles, tanks: $113.6 million (up 54.2%)
Among these import subcategories, South Korea’s purchases of public-transport vehicles (up 65.9%), armored vehicles and tanks (up 54.2%) then tractors (up 18.5%) grew at the fastest pace from 2022 to 2023.
These amounts and the percentage gains within parenthesis clearly show where the strongest demand lies for different types of imported optical, technical and medical products among Korean businesses and consumers.
See also South Korea’s Top 10 Major Export Companies, South Korea’s Top Trade Partners, South Korea’s Top 10 Exports and Top South Korean Trade Balances
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed April 17, 2024
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on April 17, 2024
International Trade Centre, Trade Map. Accessed on April 17, 2024