South Korea's Automobile Exports Decline Over 20% in February
Synopsis
In February, South Korea's automobile exports experienced a significant drop of 20.8%. Fewer working days due to the Lunar New Year holiday contributed to this decline. However, eco-friendly vehicle exports reached record highs, showcasing resilience in this segment amidst broader challenges.
Key Takeaways
20.8% decline in auto exports in February.
Hybrids exports surged by 23.5% .
Eco-friendly vehicle exports reached $4.5 billion in two months.
Vehicle sales dropped 7.2% domestically.
Stock market rose over 3.5% on tech gains.
Seoul, March 18 (NationPress) In February, South Korea witnessed a significant decline in its automobile exports, which plummeted by 20.8 percent compared to the same month last year. This downturn was attributed to a reduction in the number of working days, as reported by government data on Wednesday.
The total value of car exports reached US$4.8 billion for the month, according to the Ministry of Trade, Industry and Resources, as indicated by the Yonhap news agency.
The February results were influenced by fewer working days due to the Lunar New Year holiday, the ministry explained.
Notably, the shipment of hybrid vehicles saw a remarkable increase of 23.5 percent to $1.21 billion. However, the exports of electric vehicles (EVs) and hydrogen-powered cars experienced an 8.2 percent decline, totaling $670 million.
The ministry highlighted that the cumulative exports of eco-friendly vehicles, encompassing EVs, hydrogen-fueled cars, and hybrids, reached a record high of $4.5 billion in the first two months of the year.
In terms of destinations, exports to the United States fell sharply by 29.4 percent year-on-year, while shipments to the European Union decreased by 20 percent.
Conversely, export volumes to Latin America surged by 21.7 percent compared to the same period a year ago, as per the data.
On the domestic front, sales of vehicles reached 123,275 units last month, marking a 7.2 percent decline from the previous year.
In financial markets, South Korean shares climbed over 3.5 percent in late trading on Wednesday, buoyed by substantial gains in leading technology stocks, including Samsung Electronics and SK Hynix.
The benchmark Korea Composite Stock Price Index (KOSPI) surged by 204.27 points, or 3.62 percent, to 5,844.75 as of 11:20 a.m.
Hyundai Motor's stock rose by 2.97 percent, while Kia saw an increase of 3.71 percent. Additionally, Hyundai Motor's auto parts subsidiary, Hyundai Mobis, advanced by 3.64 percent.
Furthermore, AI investment firm SK Square experienced a notable jump of 6.13 percent, whereas power plant manufacturer Doosan Enerbility expanded by 2.78 percent.
Point of View
It is crucial to recognize the dual narrative in the automotive sector. While the overall decline in exports raises concerns, the surge in eco-friendly vehicle shipments indicates a shift in consumer preferences and market dynamics, suggesting potential growth areas amidst challenges.
NationPress
5 Aug 2026
Frequently Asked Questions
What caused the decline in South Korea's auto exports in February?
The decline in auto exports was primarily due to a reduction in working days during the month, attributed to the Lunar New Year holiday.
How much did hybrid car exports increase?
Exports of hybrid cars surged by 23.5%, reaching $1.21 billion in February.
What is the total value of eco-friendly vehicle exports in the first two months of this year?
The total value of eco-friendly vehicle exports reached a record high of $4.5 billion in the first two months of the year.
How did domestic vehicle sales perform in February?
Domestic vehicle sales fell by 7.2%, totaling 123,275 units sold for the month.
What was the performance of South Korean shares on the stock market?
South Korean shares traded over 3.5% higher, driven by significant gains in blue-chip technology stocks.
