Figure 12 Monthly Export Growth in South Korea
International trading policies are one of the most significant elements of South Korea’s economic prosperity. The country interacted with free-trade agreements with many countries. One of them is Central American countries, representing more than 70% of the global economy(Santander Bank, 2021). In 2019 trade exemplified 76.7% of its GDP and reached $555 billion in exports in the same year. South Korea becomes the seventh-largest exporter in the world (Michigan State University, 2021). The country mainly exports electrical equipment and integrated circuits, which enhanced 14.6% of overall export goods in 2019, motor vehicles, refined petroleum oils, passenger and cargo ships, and parts and accessories for motor cars and tractors (OEC World, 2020). China is the top trade partner, which made up to 25.1% of total export(Santander Bank, 2021), then followed by the United States, Vietnam, Hong Kong, and Japan.
In 2020, South Korea sent out $512.8 billion worth of products worldwide (Workman, 2021). In comparison, 64.4% of products went to Asian countries, 17.2 % depot to North American, and other portions delivered to Europe, Latin America, Caribbean, Oceania, and Africa. The total export amount reflected nearly 2.7% of $18.709 trillion in the total global export earlier the previous year. At the end of 2020, South Korea had joined the Regional Comprehensive Economic Partnership (RCEP) with other 14 Indo-pacific countries, including the Association of Southeast Asian Nations. The RCEP considers the substantial free trade agreement in history and implies 30% of the global economy. It consolidated further growth in exports of goods and services. According to the International Monetary Fund (IMF), although 7.8% falling behind due to the Covid-19 pandemic during 2020. The exports anticipated rebounding to 3.5% by 2021.
Page Author: ChiWai Li
