South Korea’s annual exports have exceeded $700 billion for the first time, according to preliminary trade data released Thursday, a historic milestone that reflects a powerful second-half rebound and cements the country’s position as one of the world’s top trading economies.
Cumulative exports hit $700 billion at 1:03 p.m. local time on December 29, the Ministry of Trade, Industry and Energy and the Korea Customs Service said. The achievement arrives 77 years after the country’s first recorded exports following its founding in 1948.
With the $700 billion mark, South Korea becomes the sixth economy to reach that level of annual exports, trailing only the United States, Germany, China, Japan and the Netherlands. The country’s export trajectory has accelerated sharply in recent decades: exports first topped $100 billion in 1995 and crossed successive $100 billion thresholds every few years until reaching $600 billion in 2018. The climb to $700 billion, however, took seven years—a period marked by pandemic disruptions, geopolitical friction and a resurgence of protectionism.
From just $19 million in 1948, South Korea’s exports have grown more than 36,000-fold, representing an average annual growth rate of 14.6%. Earlier this year, trade prospects appeared clouded by U.S. tariff pressures and a broader tilt toward protectionism globally. Exports declined through the first half, but sentiment shifted after June as a new administration took office and key trade uncertainties—including tariff negotiations with Washington—eased.
The rebound was led by semiconductors, with strong contributions from automobiles, shipbuilding and biopharmaceuticals. The global appeal of Korean culture—often referred to as the Hallyu wave—also lifted overseas sales of food and cosmetics, helping diversify the export mix beyond heavy industry and technology.
Geographic diversification accompanied product diversification. While the share of exports to the United States and China dipped, shipments to Southeast Asia, the European Union and Latin America grew, broadening South Korea’s trade footprint.
Small and medium-sized enterprises increasingly drove overseas sales, with both export value and the number of exporting firms hitting records through September. “This export performance demonstrates how Korean companies and workers turned risk into opportunity despite U.S. tariffs and protectionist trends,” a senior trade official said. “Exports supported growth and jobs even amid soft domestic demand and delivered trade surpluses that helped stabilize the broader economy.”
Foreign direct investment provided another bright spot. After a slow start, inbound FDI on a reported basis reached $35 billion this year, edging past last year’s record of $34.57 billion. The government linked the increase to improved investor confidence after the APEC leaders’ meeting in Gyeongju and to policy efforts to attract capital into advanced sectors such as artificial intelligence and semiconductors. A significant portion of this year’s investment took the form of greenfield projects—new factories and facilities—which are viewed as having stronger ripple effects on local economies and employment than mergers or acquisitions.
Looking to 2025, trade officials said they will seek to maintain the momentum by strengthening manufacturing innovation, expanding into new markets and product categories, and boosting incentives for foreign investment outside the Seoul metropolitan area. The goal is to secure at least $700 billion in exports and over $35 billion in FDI for a second straight year—a target that would reinforce South Korea’s transformation from a war-torn agrarian economy into a global export powerhouse.
