South Korea shipped US$644.4 billion during 2021. That dollar total represents a 25.7% year-over-year acceleration since 2020 and a 12.3% gain over the 5-year period starting in 2017.
The 5 biggest customers for South Korean exported goods are mainland China, United States of America, Vietnam, Hong Kong and Japan. Combined, that leading quintet of importers accounted for about three-fifths (59.5%) of South Korean exports.
Applying a continental lens, approaching 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%).
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 2021. 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.
- China: US$162.9 billion (25.3% of total South Korean exports)
- United States: $96.3 billion (14.9%)
- Vietnam: $56.7 billion (8.8%)
- Hong Kong: $37.5 billion (5.8%)
- Japan: $30.1 billion (4.7%)
- Taiwan: $24.3 billion (3.8%)
- India: $15.6 billion (2.4%)
- Singapore: $14.2 billion (2.2%)
- Mexico: $11.3 billion (1.8%)
- Germany: $11.1 billion (1.7%)
- Malaysia: $10.1 billion (1.6%)
- Russia: $10 billion (1.5%)
- Australia: $9.75 billion (1.5%)
- Philippines: $9.66 billion (1.5%)
- Indonesia: $8.55 billion (1.3%)
- Thailand: $8.53 billion (1.3%)
- Turkey: $7 billion (1.1%)
- Canada: $6.7 billion (1%)
- Poland: $6.6 billion (1%)
- United Kingdom: $6 billion (0.9%)
- Netherlands: $5.8 billion (0.9%)
- Brazil: $4.67 billion (0.7%)
- France: $4.66 billion (0.7%)
- Italy: $4.6 billion (0.7%)
- Belgium: $4.44 billion (0.7%)
Almost nine-tenths (88%) of South Korean exports in 2021 were delivered to the above 25 trade partners.
The fastest-growing top importers that increased purchases of goods shipped from South Korea from 2020 to 2021 were Belgium (up 61.1%), Australia (up 57.5%), France (up 53.1%), Taiwan (up 47.6%), Russia (up 44.7%), Singapore (up 44.3%), Italy (up 42.7%), Netherlands (up 40.5%) and Mexico (up 36.9%).
Countries Causing the Greatest Trade Deficits for South Korea
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 2021, South Korea incurred the highest trade deficits with the following countries.
- Japan: -US$24.6 billion (country-specific trade deficit in 2021)
- Australia: -$23.2 billion
- Saudi Arabia: -$20.9 billion
- Qatar: -$11.2 billion
- Germany: -$10.9 billion
- Kuwait: -$7.9 billion
- Russia: -$7.4 billion
- Iraq: -$4.3 billion
- Italy: -$3.4 billion
- United Arab Emirates: -$3.3 billion
Among South Korea’s trading partners that cause the greatest negative trade balances, South Korean deficits with Russia (up 98%), Australia (up 85%) and Saudi Arabia (up 65.2%) grew at the fastest pace from 2020 to 2021.
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
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.
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 2021, South Korea incurred the highest trade surpluses with the following countries.
- Hong Kong: US$35.2 billion (country-specific trade surplus in 2021)
- Vietnam: $32.8 billion
- China: $24.3 billion
- United States: $22.7 billion
- India: $7.5 billion
- Turkey: $5.8 billion
- Philippines: $5.8 billion
- Poland: $5.5 billion
- Singapore: $3.5 billion
- Mexico: $3.4 billion
Among South Korea’s trading partners that generate the greatest positive trade balances, South Korean surpluses with Singapore (up 152.3%), Mexico (up 80%) and the Philippines (up 42.6%) grew at the fastest pace from 2020 to 2021.
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 March 21, 2022
International Trade Centre, Trade Map. Accessed on March 21, 2022
Investopedia, Net Importer Definition. Accessed on March 21, 2022
Korea Trade World, South Korean Suppliers. Accessed on March 21, 2022
