S.Korea exports grow 25.8% y/y in 2021

South Korea's exports expanded at their fastest pace in 11 years in 2021, with the total export value reaching a record high, supported by post-pandemic recoveries in global demand.

For the full year, exports rose 25.8 per cent from a year earlier to $644.54 billion, trade ministry data showed on Saturday, the fastest pace since 2010.

That also marked the first growth in three years after contractions of 5.5 per cent and 10.4 per cent in 2020 and 2019, respectively.

"Now is the time to head towards the $700 billion export-era ... The trade ministry will step up policy efforts so that industries and exports can tow the complete (economic) normalisation this year," Minister Moon Sung-wook said.

A breakdown by items showed exports of semiconductors jumped 29 per cent year-on-year to a record $128 billion, while those of petrochemicals also surged 54.8 per cent to a record $55.1 billion. Other items such as cars and steel jumped 24.2 per cent and 37 per cent, respectively.

By destination, exports to China, South Korea's biggest trading partner, rose 22.9 per cent, and those to the United States and the European Union jumped 29.4 per cent and 33.9 per cent.

Meanwhile, imports for the full year jumped 31.5 per cent to a record $615.1 billion, rebounding from a 7.1 per cent contraction in 2020.

Moon also said the ministry is reviewing joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and aims for more trade pacts to expand its export markets.

Saturday's data also showed exports in the final month of the year expanded 18.3 per cent year-on-year, extending growth into a 14th straight month, though the rate was slower than 32 per cent in November. A Reuters' poll of 13 economists had expected 22 per cent growth.

Total exports stood at $60.74 billion in December, the largest ever monthly figure.

A 35.1 per cent jump in semiconductors exports led December growth, while overall exports to China and the United States also soared 20.8 per cent and 22.9 per cent, respectively.