South Korea’s exports plunge in May, dropping nearly 24 percent in just ten days. The fall marks a sharp reversal from April’s brief rebound. Exporters shipped $12.8 billion from May 1 to 10, down from $16.8 billion a year earlier. While the number of working days declined this year, average daily exports still dipped by 1 percent. Economists say the deeper concern lies in weakening global demand and rising trade barriers.
Shipments to China and the US fell 20.1 and 30.4 percent, respectively, reflecting pressure from recent American tariffs. Exports to Vietnam declined 14.5 percent, while sales to the European Union plunged 38.1 percent. Among top markets, only Taiwan showed growth, with a 14.2 percent increase in orders. South Korea’s exports plunge in May across almost every region, intensifying fears of broader contraction. Government officials warned of mounting risks in trade-dependent sectors.
Semiconductors offered rare good news, climbing 14 percent on strong demand and stable pricing. However, auto exports slumped 23.2 percent to $1.12 billion, while auto parts dropped 42.6 percent. Petroleum products fell 36.2 percent, and steel exports dropped 41.2 percent. Ship sales fell 8.7 percent, while home appliances plummeted 47.2 percent. Despite resilience in chips, South Korea’s exports plunge in May due to steep losses in most sectors.
Imports also fell by 15.9 percent, totaling $14.6 billion over the same period. Shipments from China and the US fell 16.8 and 20 percent, respectively. However, imports from Vietnam and Russia rose by 14.5 and 22 percent. Key import categories like oil, gas, and semiconductors all posted steep declines. The trade deficit reached $1.7 billion, shrinking the year-to-date surplus to just $10.28 billion.
Economists at Hyundai Research Institute lowered their 2025 export growth forecast to minus 4 percent. They expect GDP to grow only 0.7 percent, down from earlier projections. The Korea Institute of Finance also cut its growth outlook to 0.8 percent. Both agencies cited Trump’s tariffs as a key drag on trade momentum. Without major policy adjustments, South Korea faces growing threats to economic stability.
