South Korea’s overall trade surplus for all products equaled US$45.2 billion in 2020, up by 2.6% from a $44.1 billion surplus in 2013. Year over year, the $45.2 billion in black ink for 2020 represents a 15.8% uptick from the $39.1 billion surplus that South Korea generated during 2019.
To put South Korea’s $45.2 billion trade surplus metric into perspective, the country’s total external debt encompassing both public and private red ink equaled -$511 billion at September 2020. South Korea’s external debt is the equivalent of over 11 times the magnitude of its positive international trade balance.
Top South Korean Trade Balances by Product and Country
Product+
The following 10 leading products generated a surplus subtotal of $135.6 billion for South Korea in its global trade during 2020. Metrics listed below highlight South Korea’s strongest competitive advantages over worldwide trading partners in terms of commodities.
- Integrated circuits/microassemblies: US$42.6 billion (Up 120.7% since 2013)
- Cars: $23.6 billion (Down -39.1%)
- Cruise/cargo ships, barges: $14 billion (Down -38.9%)
- Automobile parts/accessories: $11.7 billion (Down -42.2%)
- Processed petroleum oils: $10.4 billion (Down -52.9%)
- Unrecorded sound media: $8.4 billion (Reversing a -$221.6 million deficit)
- Computer parts, accessories: $8.1 billion (Up 223.2%)
- Phone system devices including smartphones: $5.8 billion (Down -70.5%)
- Electric storage batteries: $5.5 billion (Up 42.8%)
- Liquid crystal/laser/optical tools: $5.4 billion (Down -75.9%)
Percentage increases for South Korea’s product surpluses from 2013 to 2020 were led by computer parts or accessories (up 223.2%), integrated circuits and microassemblies (up 120.7%), electric storage batteries (up 42.8%) then electric storage batteries (up 42.8%).
Product-
The 10 major products below accumulated a deficit subtotal of -$105.5 billion for South Korea in international trade during 2020. South Korea exhibited the severest competitive disadvantages in terms of red ink from exporting and importing the following goods.
- Crude oil: -US$44.5 billion (Down -55.2% since 2013)
- Petroleum gases: -$18.5 billion (Down -48.6%)
- Coal, solid fuels made from coal: -$9,489.5 billion (Down -26.7%)
- Machinery for making semi-conductors: -$7.1 billion (Up 122.8%)
- Iron ores, concentrates: -$6.92 billion (Down -16.8%)
- Computers, optical readers: -$6.919 billion (Up 934.1%)
- Copper ores, concentrates: -$3.8 billion (Down -2.0%)
- Medication mixes in dosage: -$3.2 billion (Up 56.2%)
- Cases, handbags, wallets: -$2.7 billion (Up 118%)
- Corn: -$2.4 billion (Down -11.4%)
From 2013 to 2020 South Korea’s red ink in global trade expanded at the fastest pace for three of these top products: computers including optical readers (up 934.1%), machinery for making semi-conductors (up 122.8%) then cases, handbags and wallets (up 118%).
South Korean product-specific deficits were slimmed down the most during the 7-year period for crude oil (down -55.2%), petroleum gases (down -48.6%) then coal (down -26.7%).
Country+
In 2020, South Korea generated a surplus subtotal worth $124.7 billion with the following 10 trading partners.
- Hong Kong: US$29.1 billion (Up 12.7% since 2013)
- Vietnam: $28 billion (Up 100.9%)
- China: $23.7 billion (Down -62.3%)
- United States: $16.7 billion (Down -18.9%)
- India: $7.1 billion (Up 35.6%)
- Marshall Islands: $4.84 billion (Down -33.2%)
- Poland: $4.81 billion (Up 70.1%)
- Turkey: $4.2 billion (Down -14.9%)
- Philippines: $4 billion (Down -20.4%)
- Hungary: $2.2 billion (Up 36.6%)
The following trade partners had the greatest increases in country-level South Korean trade surpluses since 2013: Vietnam (up 100.9%), Poland (up 70.1%), Hungary (up 36.6%) then India (up 35.6%).
Leading declines in South Korea’s positive net export scores over the most recent 7-year period were China (down -62.3%), Marshall Islands (-33.2%) and the Philippines (down -20.4%).
Country-
South Korea experienced a deficit with 81 trade partners during 2020. The following 10 trade partners created a -$83 billion deficit subtotal from exchanging exports and imports.
- Japan: -US$20.9 billion (Down -17.3% since 2013)
- Saudi Arabia: -$12.7 billion (Down -56%)
- Australia: -$12.5 billion (Up 11.8%)
- Germany: -$11.1 billion (Down -2.9%)
- Qatar: -$7.2 billion (Down -71.1%)
- Kuwait: -$5.2 billion (Down -70.7%)
- Russia: -$3.7 billion (Up 975.8%)
- Italy: -$3.4 billion (Up 52.5%)
- Iraq: -$3.3 billion (Down -54.3%)
- France: -$2.8 billion (Up 17.7%)
South Korea’s county-specific trade deficits from 2013 to 2020 swelled with three of its top trade partners namely Russia (up 975.8%), Italy (up 52.5%) then France (up 17.7%).
South Korea trimmed the size of its negative trade balances with 7 other top trade partners led by Qatar (down -71.7%), Kuwait (down -70.7%), then Saudi Arabia (down -56%).
See also South Korea’s Top Trading Partners, South Korea’s Top 10 Major Export Companies and South Korea’s Top 10 Exports
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on February 14, 2021
International Trade Centre, Trade Map. Accessed on February 14, 2021
Investopedia, Net Exports Definition. Accessed on February 14, 2021
Trading Economics, South Korea Total Gross External Debt, Summary. Accessed on February 14, 2021
Wikipedia, Economy of South Korea. Accessed on February 14, 2021