How Did Auto Exports Fare in South Korea in June Amidst US Tariffs?
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Synopsis
Discover the latest trends in South Korea's automobile exports, which saw a remarkable rise in June despite challenges posed by U.S. tariffs. The surge in shipments to Europe and Asia highlights resilience in the face of trade barriers, with high-value vehicles driving growth.
Key Takeaways
- Automobile exports rose by 2.3% in June.
- High value-added vehicles contributed to increased export value.
- Exports to the U.S. declined by 16% for the fourth month.
- Shipments to Europe and Asia surged by over 30%.
- Domestic sales increased by 5.8%.
Seoul, July 17 (NationPress) South Korea's automobile exports experienced a notable increase in June compared to the previous year, driven by a significant rise in shipments to Europe and Asia, which effectively counterbalanced a reduction in exports to the United States attributed to U.S. tariffs, as reported on Thursday.
The total value of automobile exports surged by 2.3 percent year-on-year, reaching US$6.3 billion in June, marking it as the most successful month for June exports ever, according to data provided by the Ministry of Trade, Industry and Energy, as reported by Yonhap news agency.
In terms of volume, exports declined by 8.8 percent year-on-year, totaling 244,427 vehicles. The ministry noted that the increase in value, despite the volume drop, can be attributed to the higher demand for high value-added vehicles, such as sport utility vehicles (SUVs) and electric vehicles (EVs).
Exports to the United States fell for the fourth straight month, registering a 16 percent decrease to $2.7 billion, according to the report.
The U.S. imposed a 25 percent tariff on all imported vehicles and auto parts starting in April.
Meanwhile, shipments to the European Union and Asia saw a substantial increase of 32.6 percent and 35.6 percent year-on-year, reaching $770 million and $620 million, respectively, which somewhat mitigated the downturn in U.S. exports.
Exports to the Middle East also rose by 11.9 percent, amounting to $520 million, as stated in the report.
The ministry highlighted that Germany and the Netherlands experienced significant growth, with exports nearly doubling in those markets.
Domestically, automobile sales increased by 5.8 percent year-on-year, totaling 145,843 units in June, while production remained stable at 353,233 units.
Over 72,000 eco-friendly vehicles were sold in South Korea in June, reflecting a 36 percent rise from the previous year, according to the ministry.
On the stock market, Seoul shares reduced early losses late Thursday morning, buoyed by gains in technology and auto sectors, although investor sentiment remained cautious due to U.S. tariff policies.
The Korea Composite Stock Price Index (KOSPI) fell by 9.85 points, or 0.31 percent, to 3,176.53 as of 11:20 a.m., having opened slightly lower, diverging from overnight gains on Wall Street.
Point of View
It’s essential to recognize that the resilience shown by South Korea’s automobile sector amidst U.S. tariffs reflects both strategic market adaptation and robust demand for high-value vehicles. This trend could have lasting implications for the global automotive landscape.
NationPress
17/07/2025
Frequently Asked Questions
What was the percentage increase in South Korea's auto exports in June?
South Korea's automobile exports rose by 2.3 percent in June compared to the previous year.
How did U.S. tariffs affect exports?
The U.S. tariffs led to a 16 percent decline in exports to the United States for the fourth consecutive month.
Which regions saw an increase in South Korea's auto shipments?
Shipments to the European Union and Asia increased by 32.6 percent and 35.6 percent respectively.
What types of vehicles contributed to the rise in export value?
High value-added vehicles, including SUVs and electric vehicles (EVs), contributed significantly to the increase in export value.
How did domestic automobile sales perform in June?
Domestic automobile sales in South Korea rose by 5.8 percent, totaling 145,843 units in June.
