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.
Last year, China was the largest export destination for South Korea with the export value of $124.81 billion, followed by the U.S. with $115.71 billion. The gap was the smallest in 19 years.
Exports by South Korean large conglomerates to the U.S. already surpassed those to China for the first time in 20 years in 2023.
South Korea’s exports to the U.S. have been on a constant increase in recent years. They advanced 5.4 percent on-year to reach a record high last year on the back of growing exports of cars and rechargeable batteries.
But exports to China had fallen for two years in a row after hitting an all-time high of $162.91 billion in 2021 amid China’s sagging manufacturing sector.
In a recent report, the Bank of Korea said that exports to the U.S. are forecast to continue an upturn driven by solid consumption among U.S. consumers and the expansion of South Korean entities’ investment in the U.S.
But there have also been signs that the Chinese economy is recovering gradually, which could boost its demand for South Korean goods and services.
Global credit appraiser Moody’s Investors Service recently revised up its forecast for China’s economic growth rate for this year to 4.5 percent from its previous estimate of 4 percent. AGENCIES
