Why Did South Korea's Auto Exports Plummet by 10.5% in October?
Click to start listening
Synopsis
South Korea's automobile exports saw a significant decline in October, dropping by 10.5% compared to the previous year. This downturn is primarily attributed to fewer working days due to the extended Chuseok holiday. Despite this, the cumulative auto export value from January to October reached a record high, raising questions about future trends.
Key Takeaways
- South Korea's auto exports fell by 10.5 percent in October.
- Value of auto exports reached $5.5 billion.
- Record high cumulative auto exports of $59.6 billion from January to October.
- Exports to the U.S. dropped 29 percent due to tariffs.
- Eco-friendly car exports rose by 0.9 percent.
Seoul, Nov 20 (NationPress) South Korea's auto exports witnessed a decline of 10.5 percent compared to the previous year in October, primarily attributed to the reduced number of working days due to the prolonged Chuseok holiday, according to data released on Thursday.
The total value of automobile exports reached $5.5 billion last month, down from $6.2 billion in the same month last year, as reported by the Ministry of Trade, Industry and Resources, and covered by Yonhap news agency.
From January to October, the cumulative value of auto exports soared to a record $59.6 billion.
The ministry explained that the weak export figures in October were influenced by the Chuseok holiday, which occurred in early October this year, unlike in 2024 when it fell in September.
In September, auto exports had surged by 16.8 percent year-on-year, the ministry earlier noted.
Regionally, exports to the United States dropped significantly, by 29 percent year-on-year, totaling $2.12 billion in October, largely due to the 25 percent import tariffs on Korean vehicles imposed by the Trump administration.
It is anticipated that the Trump administration may reduce the tariff on Korean cars to 15 percent as part of a trade agreement, contingent upon the South Korean government submitting a special bill to the National Assembly regarding a planned $350 billion investment in the U.S.
Finance Minister Koo Yun-cheol announced that the government aims to present this bill by the end of the month, enabling local automakers to benefit from the lower tariff rate retroactively from the submission date.
Shipments to the European Union also fell by 2.1 percent to $746 million last month, while exports to the Middle East decreased by 13.5 percent to $403 million.
Conversely, exports to Asia surged by 42 percent year-on-year, reaching $802 million, and shipments to Latin America increased by 23.7 percent to $290 million.
In terms of vehicle types, exports of eco-friendly cars, including electric vehicles (EVs), hybrid models, and hydrogen-powered vehicles, rose by 0.9 percent from the previous year, amounting to 64,427 units with a total value of $2 billion.
Specifically, hybrid car exports grew by 3.9 percent to 42,683 vehicles, while EV exports increased slightly by 0.3 percent to 19,247 units. However, shipments of plug-in hybrid cars saw a notable decline of 30.8 percent, totaling 2,492 units.
Domestically, sales of automobiles fell by 12.8 percent year-on-year to 127,000 units in October.
Point of View
The decline in auto exports raises critical questions about the impact of seasonal holidays on trade. While the record cumulative export figures suggest resilience in the industry, the ongoing tariff issues with the U.S. highlight the need for strategic policy adjustments to support local automakers.
NationPress
20/11/2025
Frequently Asked Questions
What caused the decline in South Korea's auto exports?
The decline in South Korea's auto exports was primarily due to fewer working days caused by the extended Chuseok holiday.
How much did South Korea's auto exports drop in October?
In October, South Korea's auto exports dropped by 10.5 percent compared to the same month last year.
What is the current status of tariffs on Korean cars in the U.S.?
The Trump administration imposed a 25 percent tariff on Korean cars, but it is expected to reduce this to 15 percent as part of a trade agreement.
What was the value of automobile exports in October?
The value of automobile exports in October was $5.5 billion.
How did eco-friendly car exports perform?
Exports of eco-friendly cars, such as EVs and hybrids, increased by 0.9 percent in October, totaling 64,427 vehicles.
