Some good economic news for South Korea as the new year begins. South Korean businesses enjoyed a strong year with South Korean exports surging to a record high in 2021.
Amid a global economic recovery and a heightened demand for electronic chips, South Korean exports rose 25.8% from the same time a year before to $644.54 billion compared with $512.5 billion a year earlier.
According to data released by the Ministry of Trade, Industry and Energy, the 2021 growth rate was the fastest since 2010 and also marked the first growth in three years for South Korea whose exports contracted 5.5% in 2020 and 10.4% in 2019.
The $644.54 billion marked the highest annual figure since South Korean trade data begun in 1956.
Total exports for December came in at $60.74 billion, the highest ever monthly figure and also extended growth into a 14th consecutive month December’s 18.3% growth rate in exports, was however, lower than the 32% recorded in November.
Leading the charge in exports was semiconductors or microchips as they are also known. Exports of semiconductors leaped 29% year-on-year to a record $128 billion. For December, exports of semiconductors jumped 35.1%.
On an annual basis, exports of petrochemicals soared 54.8% to a record $55.1 billion. Elsewhere, exports of cars jumped 24.2% and steel exports surged 37% year-on-year.
South Korean Minister Moon Sung-wook said:
“Now is the time to head towards the $700 billion export-era … The trade ministry will step up policy efforts so that industries and exports can tow the complete (economic) normalisation this year.”
South Korean Imports in Record Rise
As well as an increase in exports, South Korea also saw a record rise in imports in 2021. South Korea imports for the full year surged 31.5% to a record $615.1 billion.
The record increase in exports for 2021 also marked a remarkable turnaround for imports which contracted 7.1% in 2020.
