Based on the average exchange rate for 2021, the South Korean won has depreciated by -1.1% against the US dollar since 2017 but strengthened by 3.1% from 2020 to 2021. The Republic of South Korea’s stronger local currency since 2020 make Korean exports paid for in weaker US dollars relatively less expensive in 2021.
South Korea’s 5 biggest export products by value in 2021 were electronic integrated circuits, cars, refined petroleum oils, phone devices including smartphones, and automobile parts or accessories. In aggregate, those major exports accounted for well over a third (36%) of South Korea’s overall exports. That percentage suggests a relatively concentrated range of exported goods.
South Korea is the world leader for exporting cruise or cargo ships and ranks among the top countries for global sales of electronic integrated circuits, cars, refined oils and mobile phones.
The latest available country-specific data shows that 74.5% of products exported from South Korea were bought by importers in: mainland China (25.3% of the global total), United States of America (14.9%), Vietnam (8.8%), Hong Kong (5.8%), Japan (4.7%), Taiwan (3.8%), India (2.4%), Singapore (2.2%), Mexico (1.8%), Germany (1.7%), Malaysia (1.6%) and Russia (1.5%).
From a continental perspective, under two-thirds (63.1%) of South Korea’s exports by value in 2021 were delivered to fellow Asian countries while 17.8% were sold to North American importers. South Korea shipped another 12.8% worth of goods to Europe.
Smaller percentages went to Oceania (2.4%) led by Australia and Marshall Islands, Latin America (2.1%) excluding Mexico but including the Caribbean, then Africa (1.9%).
Given South Korea’s population of 51.8 million people, its total $644.4 billion in products exported during 2021 translates to roughly $12,400 for every resident in the southeast Asian nation. That per-capita dollar amount is significantly higher than the average $9,900 in 2020.
South Korea’s Top 10 Exports
The following export product groups categorize the highest dollar value in South Korean global shipments during 2021. South Korea’s top 10 exports are relatively concentrated, accounting for 84% of the overall value of its shipments. Also shown is the percentage share each export category represents in terms of overall South Korean exports.
- Electrical machinery, equipment: US$200.8 billion (31.2% of total exports)
- Machinery including computers: $76 billion (11.8%)
- Vehicles: $67 billion (10.4%)
- Plastics, plastic articles: $43.2 billion (6.7%)
- Mineral fuels including oil: $40 billion (6.2%)
- Optical, technical, medical apparatus: $22.3 billion (3.5%)
- Iron, steel: $27.9 billion (4.3%)
- Ships, boats: $22 billion (3.4%)
- Organic chemicals: $23.5 billion (3.6%)
- Articles of iron or steel: $9.8 billion (1.5%)
The fastest gainers among South Korea’s top export product categories are mineral fuels including oil (up 57.5%), organic chemicals (up 52.8%), iron or steel (up 41.5%), plastics both as materials and items made from plastic (up 36.9%), then electronic machinery and equipment (up 25.7%).
Note that the results listed above are at the categorized two-digit Harmonized Tariff System (HTS) code level. For a more granular view of exported goods at the four-digit HTS code level, see the section Searchable List of South Korea’s Most Valuable Export Products further down this article.
South Korean Major Product Trade Surpluses
South Korea achieved an overall $29.4 billion trade surplus for 2021, down -35% from the $45.2 billion worth of black ink generated during 2020.
The following types of South Korean product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Electrical machinery, equipment: US$86 billion (Up by 31.1% since 2020)
- Vehicles: $47 billion (Up by 30.7%)
- Plastics, plastic articles: $29 billion (Up by 44.5%)
- Ships, boats: $19.3 billion (Up by 19.9%)
- Iron, steel: $9.4 billion (Up by 9.5%)
- Organic chemicals: $7.5 billion (Up by 129.1%)
- Perfumes, cosmetics: $7 billion (Up by 25.2%)
- Machinery including computers: $6.9 billion (Down by -34.3%)
- Rubber, rubber articles: $5 billion (Up by 29.5%)
- Articles of iron or steel: $2.6 billion (Up by 45.6%)
South Korea has highly positive net exports in the international trade of electronic integrated circuits and microassemblies as well as phone system devices including cellular and landline phones. Albeit shrinking, these cashflows indicate South Korea’s strong competitive advantages under the electrical machinery and equipment product category.
South Korean Major Product Trade Deficits
Below are exports from South Korea that are negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on South Korea’s goods trail the home country’s import spending on foreign products.
- Mineral fuels including oil: -US$97.5 billion (Up by 59.5% since 2020)
- Ores, slag, ash: -$23.1 billion (Up by 50.4%)
- Meat: -$6 billion (Up by 22.4%)
- Clothing, accessories (not knit or crochet): -$5.1 billion (Up by 14.8%)
- Cereals: -$5 billion (Up by 33.9%)
- Wood: -$3.7 billion (Up by 30.3%)
- Aluminum: -$3.6 billion (Up by 70.6%)
- Leather/animal gut articles: -$3.5 billion (Up by 21%)
- Gems, precious metals: -$3.5 billion (Up by 5,502%)
- Knit or crochet clothing, accessories: -$3.5 billion (Up by 18.4%)
South Korea has highly negative net exports and therefore deep international trade deficits for crude oil and petroleum gases, key inputs needed for its highly industrialized economy to function effectively.
These cashflow deficiencies clearly indicate South Korea’s competitive disadvantages in the international fossil fuel market, but also represent potential opportunities for South Korea to improve its position in the global economy by innovating via alternative energy supplies.
South Korea’s Main Export Companies
Wikipedia lists many of the larger international trade players from South Korea including:
- Hyundai Motor (car, truck manufacturing)
- Hynix Semiconductor (semiconductors)
- SK Holdings (oil, gas)
- LG Electronics (consumer electronics)
- Doosan Heavy Industries (heavy machinery)
- S-Oil (oil, gas)
- Lotte Chemical (specialized chemicals)
- KT&G (tobacco)
According to global trade intelligence firm Zepol, the following companies are also examples of South Korean exporters.
- LG Electronics (dryers, washing machines, refrigerators, freezers)
- Samsung Electronics (telecommunication equipment, refrigerators, freezers)
- Hankook Tire (rubber inner tubes, vehicle tires, latex)
Searchable List of South Korea’s Most Valuable Export Products
At the more granular four-digit HTS code level, the following searchable table displays 100 of the most in-demand goods shipped from South Korea during 2021. Shown beside each product label is its total export value then the percentage increase or decrease since 2020.
| Rank | South Korean Export Product | 2021 Value (US$) | Change |
|---|---|---|---|
| 1 | Integrated circuits/microassemblies | $109,297,611,000 | +31.9% |
| 2 | Cars | $44,318,347,000 | +24.4% |
| 3 | Processed petroleum oils | $37,024,032,000 | +59.8% |
| 4 | Phone devices including smartphones | $21,992,020,000 | +22.4% |
| 5 | Automobile parts/accessories | $19,266,175,000 | +22.2% |
| 6 | Cruise/cargo ships, barges | $16,765,070,000 | +1.4% |
| 7 | Computer parts, accessories | $15,178,384,000 | +14.3% |
| 8 | Unrecorded sound media | $13,704,313,000 | +28.1% |
| 9 | Machinery for making semi-conductors | $9,275,360,000 | +10.3% |
| 10 | Electric storage batteries | $8,672,489,000 | +15.5% |
| 11 | Cyclic hydrocarbons | $8,577,566,000 | +58.2% |
| 12 | TV/radio/radar device parts | $8,009,382,000 | +1% |
| 13 | Beauty/makeup/skin care preparations | $7,663,204,000 | +25.3% |
| 14 | Polyacetal/ether/carbonates | $7,445,661,000 | +59.6% |
| 15 | Flat-rolled iron or non-alloy steel products (plated/coated) | $7,362,643,000 | +48.7% |
| 16 | Blood fractions (including antisera) | $7,151,456,000 | +22.5% |
| 17 | Liquid crystal/laser/optical tools | $6,861,149,000 | +5.1% |
| 18 | Ethylene polymers | $6,314,447,000 | +56.7% |
| 19 | Hot-rolled iron or non-alloy steel products | $6,229,787,000 | +32.3% |
| 20 | Printed circuits | $5,789,358,000 | +15.1% |
| 21 | Propylene/olefin polymers | $5,722,575,000 | +51.8% |
| 22 | Miscellaneous machinery | $5,388,208,000 | +9.7% |
| 23 | Solar power diodes/semi-conductors | $5,043,046,000 | +3.9% |
| 24 | Light vessels, fire boats, floating docks | $4,913,875,000 | +203% |
| 25 | Styrene polymers | $4,619,596,000 | +48.9% |
| 26 | Oxometal/peroxometal acid salts | $4,437,038,000 | +81.9% |
| 27 | Optical fiber cables, sheets, plates | $4,408,425,000 | +13.2% |
| 28 | Synthetic rubber | $4,052,309,000 | +62% |
| 29 | Plastic plates, sheets, film, tape, strips | $3,675,112,000 | +13.9% |
| 30 | Refrigerators, freezers | $3,670,717,000 | +41.2% |
| 31 | Heavy machinery (bulldozers, excavators, road rollers) | $3,559,698,000 | +41% |
| 32 | TV receiver/transmit/digital cameras | $3,458,784,000 | +404.2% |
| 33 | Lower-voltage switches, fuses | $3,347,831,000 | +14.5% |
| 34 | Insulated wire/cable | $3,309,395,000 | +13.7% |
| 35 | Acyclic hydrocarbons | $3,276,073,000 | +63.6% |
| 36 | Refined copper, unwrought alloys | $3,199,664,000 | +84.3% |
| 37 | Cold-rolled iron or non-alloy steel products | $3,102,036,000 | +52.5% |
| 38 | Rubber tires (new) | $2,938,133,000 | +4.7% |
| 39 | Air or vacuum pumps | $2,908,069,000 | +9.1% |
| 40 | Other measuring/testing machines | $2,843,815,000 | +12.3% |
| 41 | Piston engine parts | $2,829,481,000 | +9.8% |
| 42 | Flat-rolled other alloy steel products | $2,671,523,000 | +55.7% |
| 43 | Centrifuges, filters and purifiers | $2,573,856,000 | +18.4% |
| 44 | Electrical converters/power units | $2,461,998,000 | +13.8% |
| 45 | Machinery parts | $2,443,787,000 | +25.8% |
| 46 | Plastic plates, sheets, film, tape, strips | $2,368,716,000 | +5.3% |
| 47 | Electro-medical equip (e.g. xrays) | $2,267,035,000 | +35.1% |
| 48 | Polycarboxylic acids | $2,242,120,000 | +25.1% |
| 49 | Flat-rolled stainless steel items | $2,169,218,000 | +15.3% |
| 50 | Aluminum plates, sheets, strips | $2,157,626,000 | +37.4% |
| 51 | Silver (unwrought) | $2,134,451,000 | +30.6% |
| 52 | Other diagnostic/lab reagents | $2,046,666,000 | -5.8% |
| 53 | Acrylic polymers | $2,033,866,000 | +26.6% |
| 54 | Miscellaneous iron or steel items | $1,995,688,000 | +28.8% |
| 55 | Taps, valves, similar appliances | $1,994,515,000 | -1.5% |
| 56 | Temperature-change machines | $1,959,896,000 | -39.8% |
| 57 | Self-adhesive plastic in rolls | $1,824,220,000 | +10.7% |
| 58 | Electrical capacitators | $1,786,073,000 | +15.6% |
| 59 | Miscellaneous plastic items | $1,730,302,000 | +11.9% |
| 60 | Miscellaneous iron and steel structures | $1,701,621,000 | +37.1% |
| 61 | Plastic packing goods, lids, caps | $1,686,476,000 | +10.3% |
| 62 | Zinc (unwrought) | $1,631,913,000 | +13.3% |
| 63 | Miscellaneous iron or steel tubes, pipes | $1,605,435,000 | +83.6% |
| 64 | Electrical/optical circuit boards, panels | $1,529,869,000 | +2.8% |
| 65 | Chemical industry products/residuals | $1,512,386,000 | +27% |
| 66 | Trucks | $1,497,488,000 | +26.1% |
| 67 | Transmission shafts, gears, clutches | $1,495,086,000 | +7.6% |
| 68 | Electric circuit parts, fuses, switches | $1,458,906,000 | +13.4% |
| 69 | Electrical machinery | $1,446,505,000 | +6.1% |
| 70 | Moulding boxes/base | $1,432,612,000 | -17.5% |
| 71 | Liquid pumps and elevators | $1,387,403,000 | +11.3% |
| 72 | Electric motors, generators | $1,361,500,000 | +11.2% |
| 73 | Air conditioners | $1,347,803,000 | +17.3% |
| 74 | Interchangeable hand/machine tools | $1,336,233,000 | -13.2% |
| 75 | Platinum (unwrought) | $1,326,262,000 | +186% |
| 76 | Electrical lighting/signaling equpment, defrosters | $1,322,102,000 | +14.7% |
| 77 | Piston engines | $1,274,947,000 | +25.6% |
| 78 | Amino-resins | $1,266,930,000 | +58.3% |
| 79 | Synthetic yarn woven fabrics | $1,265,848,000 | +19.4% |
| 80 | Yarn wash/clean/iron machines | $1,258,912,000 | +31.2% |
| 81 | Coal tar oils (high temperature distillation) | $1,205,066,000 | +50.3% |
| 82 | Copper ores, concentrates | $1,185,736,000 | +205.6% |
| 83 | Lifting/loading machinery | $1,184,481,000 | +12.9% |
| 84 | Iron ferroalloys | $1,169,168,000 | +83.3% |
| 85 | Acyclic alcohols | $1,166,994,000 | +74.3% |
| 86 | Copper foil | $1,161,497,000 | +49.5% |
| 87 | Synthetic filament yarn | $1,151,825,000 | +41.3% |
| 88 | Phenols/phenol-alcohols | $1,130,404,000 | +87.4% |
| 89 | Synthetic staple fibers | $1,129,533,000 | +16.9% |
| 90 | Other than warp-knit fabrics | $1,106,226,000 | +14.1% |
| 91 | Tractors | $1,089,465,000 | +52.9% |
| 92 | Coated paper | $1,086,529,000 | +9.4% |
| 93 | Chemicals used in electronics | $1,071,559,000 | +16.2% |
| 94 | Engines (diesel) | $1,067,922,000 | +2.8% |
| 95 | Oscilloscopes, spectrum analyzers | $1,023,384,000 | +7.2% |
| 96 | Aircraft parts | $980,546,000 | -8.9% |
| 97 | Pigments, enamels, glazes | $976,669,000 | +66% |
| 98 | Washing machines | $965,697,000 | +59.6% |
| 99 | Ball, roller bearings | $956,100,000 | +19.6% |
| 100 | Regulate/control instruments | $936,259,000 | +2.9% |
These 100 exported goods were worth a subtotal of US$532.1 billion or over four-fifth (82.6%) by value for all products exported from South Korea during 2021.
In macroeconomic terms, South Korea’s total exported goods represent 25.7% of its overall Gross Domestic Product for 2021 ($2.503 trillion valued in Purchasing Power Parity US dollars). That 25.7% for exports to overall GDP in PPP for 2021 compares to 22.4% one year earlier. Those percentages suggest a relatively increasing reliance on products sold on international markets for South Korea’s total economic performance, albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. South Korea’s unemployment rate was 3.842% at October 2021, down from an average 3.942% in 2021 according to the International Monetary Fund.
South Korea’s capital city is Seoul.
See also South Korea’s Top 10 Major Export Companies, South Korea’s Top Trade Partners and Top South Korean Trade Balances
Research Sources:
Central Intelligence Agency, The World Factbook: Country Profiles. Accessed on March 21, 2022
International Monetary Fund, Exchange Rates selected indicators (National Currency per U.S. dollar, period average). Accessed on March 21, 2022
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on March 21, 2022
International Trade Centre, Trade Map. Accessed on March 21, 2022
Investopedia, Net Exports Definition. Accessed on March 21, 2022
Wikipedia, Gross domestic product. Accessed on March 21, 2022
Wikipedia, List of Companies of South Korea. Accessed on March 21, 2022
Wikipedia, Purchasing power parity. Accessed on March 21, 2022
Zepol’s company summary highlights by country. Accessed on March 21, 2022
