This should be considered a good thing for South Korea as China has repeatedly shown they are willing to use economic retaliation to try and coerce policy changes where the U.S. has not:
South Korea’s exports to the United States exceeded those to China so far this year, data showed Monday, raising the possibility that the U.S. could be the top export destination for South Korea for the first time in 22 years.
Outbound shipments to the U.S. amounted to $53.3 billion from January through May 2024, compared with South Korea’s export value to China of $52.69 billion, according to the data from Statistics Korea and the Ministry of Trade, Industry and Energy.
If the current trend continues, the U.S. will be the No. 1 export destination for South Korea for the first time since 2002.
Korea’s exports will likely decline by 10.2 percent this year from the previous year, according to the Korea International Trade Association (KITA).
The trade lobby said in a report Thursday that it expects outbound shipments for this year to record $543 billion due to global trade friction and tumbling semiconductor prices, making it fall far short of the record milestone the country achieved last year of $604.9 billion.
Exports have recorded on-year declines since December last year.
“Exports will drop by around $60 billion compared to last year, and around $30 billion [of the drop] is due to semiconductor prices that have fallen by 40 percent,” said KITA CEO Kim Young-ju during a briefing at the KITA headquarters in Gangnam District, southern Seoul. “On top of this, petrochemical prices fell 10 percent from the previous year due to falling global crude oil prices.”
