In 2023, South Korea experienced a 7.4 percent year-on-year decline in exports, reaching $632.6 billion, as revealed by data from the Ministry of Trade, Industry, and Energy. The sluggish performance of chips, coupled with global economic uncertainties, contributed to this decrease. Imports also fell by 12.1 percent to $642.7 billion, resulting in a trade deficit of $9.97 billion.

The Ministry attributed the subdued exports to global monetary tightening measures and the delayed recovery of the Chinese economy. Despite this, the automotive sector is expected to maintain robust performance throughout 2023, with semiconductor exports gradually recovering. Monthly exports for December increased by 5.1 percent year-on-year to $57.6 billion, marking the third consecutive monthly rise.

After 13 months of on-year decline, South Korea's exports rebounded in October, serving as a key economic growth engine. December saw a 10.8 percent year-on-year decrease in imports to $53.1 billion, resulting in a trade surplus of $4.48 billion, the second consecutive month of export outpacing imports.

Noteworthy sectoral performances include a 21.8 percent year-on-year increase in chip exports to $11 billion in December, signaling a rebound. Semiconductor exports are anticipated to continue recovering, driven by new mobile product releases and increased corporate investments in the artificial intelligence sector.

In 2023, semiconductor exports for the entire year fell by 23.7 percent to $98.6 billion, while automobile exports grew by 17.9 percent to $6.3 billion, maintaining growth for 18 consecutive months. Display product exports increased by 10.9 percent to $1.52 billion, driven by rising demand for OLED products. Overseas sales of home appliances also edged up by 2.9 percent to $591 million.

The United States became South Korea's top export destination for the first time since June 2003, with shipments advancing by 20.8 percent to $11.2 billion in December. Exports to China, however, declined by 2.9 percent to $10.9 billion, primarily due to weaker demand for steel amid the real estate sector slump.

For the entire year of 2023, exports to the U.S. reached $115.7 billion, a 5.4 percent year-on-year increase, while exports to China decreased by 19.9 percent to $124.8 billion. The government aims to address external risks, including concerns over maritime security in the Red Sea, to sustain export momentum.