South Korea's exports are expected to surpass Japan's for the first time, with the semiconductor industry serving as a key driving force.

Korean Media: South Korea's Exports May Surpass Japan's for the First Time This Year!

On May 8, Korean media outlet Herald Business published an article stating that driven by a booming semiconductor industry, South Korea's exports last year were approaching those of Japan.

Analysts believe that this year, South Korea's exports may surpass Japan's for the first time.

According to data released by South Korea's Ministry of Industry, Trade and Energy, the country's total exports reached $70.933 billion last year, breaking through the $70 billion milestone in history for the first time.

South Korea's exports surpassed $100 billion in 1995, $200 billion in 2004, $300 billion in 2006, $400 billion in 2008, $500 billion in 2011, and $600 billion in 2018.

Reaching $70 billion in exports is the result of seven years of effort since surpassing the $60 billion mark in 2018.

South Korea has become the sixth country in the world—after the United States (2000), Germany (2003), China (2005), Japan (2007), and the Netherlands (2018)—to achieve annual exports exceeding $70 billion.

With South Korea’s annual exports reaching $70 billion, the gap with Japan has narrowed to its smallest historical level.

Japan’s annual exports peaked at $82.26 billion in 2011 and have been declining since then, reaching $73.834 billion last year.

As a result, the export gap between South Korea and Japan has narrowed to $29.01 billion.

Looking at monthly trends, South Korea’s momentum remains strong. In May, August, September, and December of last year, South Korea’s monthly exports exceeded Japan’s on four occasions.

Based on cumulative export figures from the second half of last year, South Korea’s exports totaled $37.465 billion, compared to Japan’s $37.825 billion—significantly narrowing the gap between the two nations.

The semiconductor industry is undoubtedly the biggest contributor to South Korea’s export boom.

The "super cycle" in semiconductors truly began in the second half of last year and continues into this year, driving strong export performance.

In January this year, South Korea’s exports reached $65.85 billion, marking the first time the monthly figure broke through the $60 billion threshold.

According to data from the World Trade Organization, Japan’s exports in January amounted to $58.63 billion, a figure easily surpassed by South Korea.

Following February, when South Korea’s exports exceeded Japan’s, March saw South Korea’s exports reach $86.13 billion, ushering in the nation’s first-ever month with exports surpassing $80 billion.

In the first quarter of this year, South Korea’s exports totaled $219.3 billion, shattering the previous record for quarterly exports.

Given that exports typically accelerate in the second half of the year, total exports this year could exceed the South Korean government’s target of $74 billion and set a new record for the second consecutive year.

Industry forecasts suggest that if this trend continues, this year will mark the first time South Korea overtakes Japan in exports.

Original source: toutiao.com/article/1864621301391559/

Disclaimer: The views expressed in this article are solely those of the author.