Korea's exports to China account for over 20% again... share of exports to the US plummets to 15% Due to the "tariff shock" initiated by Trump, the potentially largest export market for Korean companies, the US market, has contracted. Previously, Korean exports to the US grew rapidly due to active Korean corporate investments in the US, reduced exports to China due to Sino-US tensions, and the popularity of Korean cars in the US. However, affected by the implementation of tariff measures, exports have sharply decreased recently. Conversely, the rebound effect of exports to China, which had significantly declined in recent years, has become apparent, with its share in Korea's total exports rising back to 20%. On the 12th, according to the Korea Customs Service, among the overall exports from May 1 to 10 (12.8 billion USD, approximately 18 trillion KRW), the export value to the US was 2 billion USD, accounting for only 15.5%, while the export value to China (2.8 billion USD) accounted for 21.8%. This means that during the period when Korean exports to China were reduced due to the relocation of production bases by Korean companies, lockdowns in Chinese megacities during the pandemic, and the impact of Sino-US tensions on supply chains, the US market, which had once been Korea's largest export market, has significantly contracted. From 2023 to 2024, the share of exports to China fell consecutively to around 19.5%, while the share of exports to the US exceeded 18%, posing a threat to China's position as Korea's largest export market. At the same time, Korean companies have expanded their investments in the US centered on semiconductors and electric vehicle batteries. In 2023, South Korea invested 21.5 billion USD in the US, jumping to become the top country in terms of investment in the US. During the machinery export period for factory construction and the subsequent surge in related parts and raw material exports, the total exports to the US increased from 66.5 billion USD in 2016 to 127.8 billion USD in 2024. The popularity of Korean cars, particularly high-priced electric vehicles and SUVs, in the US market also led to a significant increase in Korea’s car exports to the US, reaching 34.7 billion USD in 2024, a record high. Prior to the official imposition of tariffs in the first quarter, the US export share (19%) led China by one percentage point, with predictions suggesting that "if this trend continues, exports to the US may surpass those to China for the first time since 2002." However, after the tariffs were imposed in April, exports to China still led, and by May, the gap widened by more than six percentage points. In response, Joo Won [name phonetically], head of the Korea Economic Institute, stated: "In the short term, it is unlikely that exports to the US will surpass those to China," and "If the US maintains its tariff rates on major export categories such as automobiles, Korea's exports to the US will be difficult to recover." Source: Chosun Ilbo [Image: //p3-sign.toutiaoimg.com/tos-cn-i-ezhpy3drpa/4b5c749504a4489194e1015f9a9d3a04~tplv-obj:687:455.image?_iz=97245&bid=15&from=post&gid=1831990271448076&lk3s=06827d14&x-expires=1754870400&x-signature=Zmos9G4l6CO6lChdXiURGNf1w8c%3D] Original article: https://www.toutiao.com/article/1831990271448076/ Disclaimer: This article solely represents the views of the author.