South Korea Balance of Trade

South Korea's trade surplus stood at USD 4.30 billion in February 2025, almost unchanged from USD 4.29 billion in the same month a year earlier, smaller than market expectations of USD 4.59 billion, preliminary data showed. Exports grew by 1.0% year-on-year, below market forecasts of a 3.8% rise, recovering from a marginally revised 10.2% plunge in the prior month due to more working days in the month after the Lunar New Year holidays fell in January. Meanwhile, imports unexpectedly rose 0.2% to USD 48.3 billion, after a 6.4% fall in the previous month, beating market estimates of a 1.7% drop, supported by rises in non-energy imports (7.4%).

South Korea's trade balance posted a deficit of USD 1.89 billion in January 2025, swinging from a USD 0.40 billion surplus in the same month a year earlier, compared to market expectations of a USD 1.28 billion gap. It was the first trade deficit since May 2023, driven by a sharp fall in exports. Exports shrank by 10.3% year-on-year to a 2-year low of USD 49.12 billion, compared to market forecasts of a 13.5% plunge, reversing sharply from a 6.6% growth in the prior month due to fewer working days from the extended Lunar New Year holiday. Meanwhile, imports dropped by 6.4% to USD 51 billion, reversing a 3.3% rise in the previous month, softer than market estimates of a 9.9% fall. Last year, the country registered a USD 51.80 billion trade surplus.

South Korea's trade surplus widened to USD 6.49 billion in December 2024 from USD 4.45 billion in the same month a year earlier, surpassing market expectations for a gain of USD 4.21 billion and marking the largest amount since September, flash figures showed. The latest result marked the 19th straight month of trade surplus, with exports growing 6.6% yoy, the strongest rise since June, to a 31-month peak of USD 61.38 billion. Meanwhile, imports rose 3.3% to the biggest numbers since March 2023 of USD 54.8 billion. For the full 2024, South Korea logged a trade surplus of USD 51.80 billion, recovering from a two-year run of deficits since 2022, when its trade balance fell into the red for the first time in 14 years. Despite the resilience, the trade-reliant economy appears to be slowing down as global commerce becomes increasingly uncertain, amid the risks of rising tariffs and a renewed US-China trade conflict following Donald Trump's victory in the US presidential race in November.