Korea is seeing an accelerated increase in its exports, prompting speculation that it could overtake Japan in exports for the first time this year.
The gap in total value of exports between the two countries shrank to a record low of $3.5 billion in the first half of the year. It previously amounted to about $160 billion in 2018 and then nearly halved to $85 billion in 2023.
Such a narrowed gap comes as Korea’s outbound shipments have been on the upswing, whereas Japan’s have been stagnant.
For instance, Korea’s exports in the first six months of this year reached $334.8 billion, up 9 percent from the previous year.
Over the cited period, Japan’s exports slid 3.6
percent to $338.3 billion.
-->
In July, Korea extended its winning streak in exports for the 11th consecutive month as outbound shipments jumped 13.9 percent year-on-year to $57.4 billion, according to data from the Ministry of Trade, Industry and Energy.
Semiconductors and other key sales items are driving robust exports.
Exports of chips rose 50.4 percent year-on-year to $11.2 billion in July, marking an increase for the ninth straight month and maintaining a growth rate above 50 percent for the fourth consecutive month.
Outbound shipment of display products went up 2.4 percent year-on-year, while those of computers and mobile devices climbed 61.6 percent and 53.6 percent, respectively.
“Under the circumstances, Korea certainly has a chance to overtake Japan in exports as the prospect remains bright,” said Lee Ji-pyeong, a professor at Hankuk University of Foreign Studies.
He noted that Korea’s exports are poised to set a record of $700 billion this year, whereas Japan’s have been decreasing after peaking at $823.6 billion in 2011.
In terms of rankings of the world’s largest exporters, Korea was in 12th in 2008 and then moved up to seventh in 2010 and again to sixth in 2015.
It has been moving between sixth and eighth ever since.
Meanwhile, Japan has remained unchanged in fifth place since 2019 after being overtaken by the Netherlands in the same year.
“And Korea outpacing Japan in exports means it can claim the No. 5 spot if it reaches export goals as planned for this year,” Lee said.
Trade experts deem that the Japanese central bank’s shift to a hawkish monetary policy after sustaining a weak yen for years can positively influence Korea’s exports.
Source: Korea Times
