South Korea becomes sixth $700bn exporter

Dec 30, 2025, 08:12 am

South Korea has entered the era of $700 billion in annual exports, becoming the world’s sixth country to achieve the milestone.

According to the Ministry of Trade Industry and Energy and the Korea Customs Service, cumulative exports surpassed $700 billion at 1:03 p.m. on Dec. 29. The achievement comes seven years after exports first exceeded $600 billion in 2018.

The ministry noted that while South Korea was the seventh country globally to reach the $600 billion mark, it became the sixth to surpass $700 billion, underscoring the country’s relatively fast export growth compared with other major economies.

The government described the record as particularly meaningful given challenging global trade conditions, including U.S. tariffs and the spread of protectionism. Officials said strong export performance helped support economic growth and job creation despite sluggish domestic demand.

Exports have set new monthly records for six consecutive months since June, following the resolution of tariff negotiations with the United States, which eased uncertainty. Semiconductors led the surge, alongside continued strength in automobiles, shipbuilding and biotechnology. Consumer goods and electrical equipment also emerged as new growth engines.

Amid intensifying protectionist policies by the United States and China, South Korea successfully diversified its export markets, expanding shipments to ASEAN countries, the European Union and Latin America. By September, both export volumes and the number of exporting small and medium-sized enterprises reached all-time highs, further broadening the export base.

Foreign direct investment also rebounded sharply. Despite weak performance in the first half of the year, investment accelerated after the launch of the new government, bolstered by restored external confidence and investment promotion tied to the APEC leaders’ meeting. Investment in advanced industries such as artificial intelligence and semiconductors surged, pushing annual inflows beyond $35 billion, above the previous record of $34.57 billion set in 2024.

Notably, new factory investments—key to regional economic revitalization and job creation—increased significantly, marking the highest level ever in both scale and quality of foreign investment.

Looking ahead, the government plans to sustain momentum by strengthening industrial competitiveness through manufacturing innovation, further diversifying export markets and products, and upgrading trade support systems. It also aims to expand incentives for foreign investment outside the capital region, targeting a second consecutive year of $700 billion in exports and more than $35 billion in foreign direct investment.

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