S. Korea's exports to U.S. take up 15% of total exports for first time since 2004
Updated: 2021-11-25 07:29:36 KST
South Korea's exports to the U.S. are increasing at a rapid pace, but exports to China have seen sluggish growth.
A recent report by the Federation of Korean Industries shows, South Korea's exports to the U.S. have grown to take up 15 percent of the country's total for the first time in 17 years.
Although that is still smaller than China,. which accounts for around a quarter of all exports, the current pace of growth of shipments to the U.S. is expected to narrow the gap.
In fact, that faster rate of growth has been apparent over the past five years.
From 2017 to 2021, exports to the U.S. grew almost 18 percent from the previous five years,coming to around 3-hundred-86 billion U.S. dollars.
Although China is still Seoul's biggest market, exports to China only grew 7 percent during the same period.
The report says the bumper growth of exports to the U.S. can be attributed to the Biden administration's carbon slashing measures.
The ambitious carbon net zero goal led to increased U.S. demand for electric cars, which in turn boosted Korea's chip and battery exports by 50 percent over the past two years.
Experts say that this recent trend can be seen as a positive sign, as Korea can reduce its high reliance on a single country, China.
"Because export dependency on China has been too high, if China suffers an economic downturn, the effect will be passed on to us too. So the fact that reliance on China is decreasing is positive."
He added that Korea should still work to diversify both its export and import channels to reduce risks coming from China.
Kim Sung-min, Arirang News