Is ASEAN Becoming a Key Export Market for South Korea Amid Global Trade Tensions?
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Synopsis
South Korea's exports to ASEAN are on the rise, compensating for declines in shipments to the U.S. and China due to ongoing trade tensions. This growth is fueled by the shift in global supply chains and the expanding digital economy in Southeast Asia.
Key Takeaways
- South Korea's exports to ASEAN increased by 4.3% in early 2023.
- Shipments to the U.S. and China are declining due to tariff implications.
- ASEAN is becoming a crucial alternative market for South Korea.
- Key exports include electronics and renewable energy technologies.
- Future trends indicate ASEAN's growing significance in global trade.
Seoul, June 15 (NationPress) South Korea's exports to the Association of Southeast Asian Nations (ASEAN) are witnessing significant growth, compensating for recent declines in shipments to both the United States and China amidst a global trade conflict that has been partly ignited by the U.S.' changing tariff strategies, according to new data released on Sunday.
Outbound shipments to the ASEAN region were valued at US$47.88 billion during the January-May timeframe, marking a 4.3 percent increase compared to the same period last year, as reported by the Korea International Trade Association (KITA).
In contrast, South Korea's exports to the U.S. declined by 4.3 percent as the ramifications of the previous administration’s tariff policies began to take effect, while exports to China dropped by 5 percent, according to reports from Yonhap news agency.
Notably, in February, exports to ASEAN nations reached $9.56 billion, surpassing monthly shipments to China, which were $9.5 billion, for the first time in 23 years.
In March, shipments to ASEAN once again exceeded those to China, totaling $10.26 billion compared to $10.06 billion.
In May, exports to the U.S. fell by 8.4 percent year-on-year to $10.05 billion, while those to China contracted by 8.1 percent to $10.4 billion, largely due to the consequences of the previous administration's extensive tariff measures. Meanwhile, shipments to ASEAN decreased by 1.3 percent to $10 billion in the same month.
The Korea Trade-Investment Promotion Agency (KOTRA) has previously identified ASEAN nations as promising export destinations for South Korea this year, driven by a global trend to reduce supply chain reliance on China, the rapid expansion of the digital economy, and the growth of middle-class households in the region.
Key export items for the region include semiconductors, electronics, home appliances, robots, EV battery parts, and renewable energy facilities, as highlighted by KOTRA.
"With the ongoing decoupling of the U.S. and China, China is increasingly pushing to strengthen its foothold in the ASEAN market. In the future, ASEAN will become an even more significant market, especially as the U.S. shifts its import sources from China to ASEAN," stated Austin Chang, president of the Institute for International Trade under KITA.
Point of View
It's crucial to recognize the shifting landscape of global trade. South Korea's increasing exports to ASEAN highlight a strategic pivot in response to escalating tensions with major trading partners. This development underscores the importance of diversifying trade relationships, which is essential for economic resilience.
NationPress
15/06/2025
Frequently Asked Questions
What is driving the increase in South Korea's exports to ASEAN?
The rise in South Korea's exports to ASEAN is driven by a combination of decreased reliance on China due to trade tensions, rapid growth in the digital economy, and increasing middle-class households in the region.
How do current U.S. tariffs affect South Korea's exports?
Current U.S. tariffs have led to a decline in South Korea's exports to the U.S. and China, prompting the country to seek new markets such as ASEAN to mitigate losses.
What types of goods are being exported to ASEAN?
Prominent export items to ASEAN include semiconductors, electronics, home appliances, robots, EV battery parts, and renewable energy facilities.
Why is ASEAN considered a favorable market for South Korea?
ASEAN is seen as a favorable market due to its growing economy, expanding middle class, and the shifting focus of global supply chains away from China.
How has the trade relationship between South Korea and ASEAN evolved?
The trade relationship has evolved significantly, with recent data showing ASEAN exports surpassing those to China for the first time in decades, indicating a strategic shift.
