Officially named the Republic of Korea, South Korea is strategically located between the world-class importers namely China to its west and another Asian economic powerhouse Japan to South Korea’s east.

South Korea exported US$632.2 billion worth of products during 2023, up by 16.6% compared to $542.3 billion five years earlier in 2019.

On an annual basis, the dollar total for 2023 represents a -7.5% year-over-year decline from $683.6 billion during 2022.

By value, the 5 biggest customers for South Korean exported goods are mainland China, United States of America, Vietnam, Japan and Hong Kong. Combined, that leading quintet of importers bought more than half (55.2%) of South Korean exports.

Applying a continental lens, 57.1% of South Korea’s exports for 2023 was delivered to fellow Asian countries while 21.7% was sold to importers in North America. South Korea shipped another 13.2% worth of goods to customers in Europe.

Smaller percentages went to Oceania (4.3%) led by Australia and Marshall Islands, Africa (1.88%), then Latin America (1.85%) excluding Mexico but including the Caribbean.

South Korea’s Top Trading Partners

Below is a list showcasing 25 of South Korea’s top trading partners in terms of export sales during 2023. That is, these are countries that imported the most Korean shipments by dollar value. Also shown is each import country’s percentage of total Korean exports.

1. mainland China: US$124.8 billion (19.7% of total South Korean exports)
2. United States: $116.3 billion (18.4%)
3. Vietnam: $53.5 billion (8.5%)
4. Japan: $29 billion (4.6%)
5. Hong Kong: $25.2 billion (4%)
6. Taiwan: $20.2 billion (3.2%)
7. Singapore: $18.8 billion (3%)
8. India: $17.9 billion (2.8%)
9. Australia: $17.8 billion (2.8%)
10. Mexico: $12.2 billion (1.9%)
11. Germany: $10.3 billion (1.6%)
12. Malaysia: $9.8 billion (1.5%)
13. Indonesia: $9.14 billion (1.4%)
14. Poland: $9.02 billion (1.4%)
15. Philippines: $9.01 billion (1.4%)
16. Türkiye: $8.99 billion (1.4%)
17. Canada: $8.43 billion (1.3%)
18. Thailand: $7.55 billion (1.2%)
19. Netherlands: $6.86 billion (1.1%)
20. Hungary: $6.79 billion (1.1%)
21. Russia: $6.13 billion (1%)
22. United Kingdom: $6.05 billion (1%)
23. Marshall Islands: $5.9 billion (0.9%)
24. France: $5.6 billion (0.9%)
25. Saudi Arabia: $5.3 billion (0.8%)

Almost nine-tenths (87.1%) of South Korean exports in 2023 was delivered to the above 25 trade partners.

The fastest-growing top importers that increased spending on goods shipped from South Korea from 2022 to 2023 were Marshall Islands (up 82.3%), Türkiye (up 16.4%), Poland (up 14.8%), Hungary (up 10.1%), Saudi Arabia (up 9.4%) and Canada (up 7.6%).

The severest decliners year over year were the Philippines (down -26.8%), Taiwan (down -23%), mainland China (down -19.9%), Malaysia (down -14.9%), Netherlands (down -12.9%), Vietnam (down -12.3%), Thailand (down -12.1%) and Indonesia (down -10.5%).

Countries Causing the Greatest Trade Deficits for South Korea

South Korea incurred a total -US$10.3 billion trade deficit for 2023, shrinking by -78.3% compared to -$47.8 billion in red ink one year earlier during 2022.

As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.

It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.

In 2023, South Korea incurred the highest trade deficits with the following countries.

1. Saudi Arabia: -US$27.4 billion (country-specific trade deficit in 2023)
2. Japan: -$18.7 billion
3. mainland China: -$18 billion
4. Australia: -$15 billion
5. Qatar: -$14.2 billion
6. Germany: -$13.3 billion
7. United Arab Emirates: -$12 billion
8. Kuwait: -$9.1 billion
9. Iraq: -$6.7 billion
10. Chile: -$6.3 billion

Among South Korea’s trading partners that cause the greatest negative trade balances, South Korean deficits with Chile (up 19.5%) and the United Arab Emirates (up 4%) grew from 2022 to 2023.

In addition, South Korea transitioned from enjoying a $1.2 billion surplus trading with mainland China to enduring the -$18 billion deficit listed above.

These cashflow deficiencies clearly indicate South Korea’s competitive disadvantages with the above countries, but also represent key opportunities for South Korea to develop country-specific strategies to strengthen its overall position in international trade.

Countries Generating the Biggest Trade Surpluses for South Korea

Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.

In 2023, South Korea incurred the highest trade surpluses with the following countries.

1. United States: US$44.6 billion (country-specific trade surplus in 2023)
2. Vietnam: $27.5 billion
3. Hong Kong: $23.4 billion
4. India: $11.2 billion
5. Poland: $7.9 billion
6. Singapore: $7.6 billion
7. Türkiye: $7.5 billion
8. Hungary: $6 billion
9. Marshall Islands: $5.9 billion
10. Mexico: $4.6 billion

Among South Korea’s trading partners that generate the greatest positive trade balances, South Korean surpluses with Marshall Islands (up 84%), United States of America (up 59%) and Türkiye (up 19.2%) grew at the fastest pace from 2022 to 2023.

These positive cashflow streams clearly indicate South Korea’s competitive advantages with the above countries, but also represent key opportunities for South Korea to develop country-specific strategies to optimize its overall position in international trade.

South Korean Companies Servicing International Customers

According to Korea Trade World’s directory, the following are examples of entrepreneurial companies that ship products from South Korea to its trading partners around the globe. Shown within parenthesis are examples of products that the Korean business specializes in.

• Auk Corp. (electronics transistors, diodes)
• Changeui Medical Co. Ltd (orthopedic/ambulatory/rehab appliances)
• Dana Biz Co. (home entertainment, security systems)
• Dyna Solution Co., Ltd. (metal-cutting/forming fluids, special oil)
• Kaps Korea Auto Parts Servies Co. Ltd (vehicle parts, accessories)
• Koinonia (iron ore, steel scrap)
• Manda International Co. Ltd (computer peripherals)
• P.K. Chemicals, Inc. (petrochemicals, additives)
• Rits International Korea (oil, gas)
• Segae Precision Co. Ltd (disposible syringes)
• YM Corp (mobile phone/GPS jammers)

 

See also South Korea’s Top 10 Exports, South Korea’s Top 10 Imports, Top South Korean Trade Balances and Top Asian Export Countries

Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on April 1, 2024

International Trade Centre, Trade Map. Accessed on April 1, 2024

Investopedia, Net Importer Definition. Accessed on April 1, 2024

Korea Trade World, South Korean Suppliers. Accessed on April 1, 2024