Exports of Consumer Goods

The Korean government and KOTRA held “2016 Korea Consumer Goods Export Expo” at COEX in Seoul from June 29 to 30.
The Korean government and KOTRA held “2016 Korea Consumer Goods Export Expo” at COEX in Seoul from June 29 to 30.

 

South Korea’s share in the global export market of consumer goods halved over the past two decades. Accordingly, industry sources say that the country should improve the competitiveness in the agriculture, forestry and fishery and food processing sectors and seek to export differentiated products.

According to a report dubbed “South Korea’s problems and tasks in consumer goods trade” released by Hyundai Research Institute on July 31, South Korea’s share in the global exports of consumer goods, alternatively known as final goods, decreased from 2.1 percent in 1995 to 0.8 percent in 2014. The country also slipped from 14th to 29th in the global rankings of consumer goods exports over the period. However, the country’s share in the global imports of final goods increased from 0.9 percent in 1995 to 1.5 percent in 2014, moving up from 19th to 16th in the global rankings.

The country’s exports of consumer goods grew as low as 1.2 percent annually on average from US$19.68 billion (21.96 trillion won) in 1995 to US$24.42 billion (27.25 trillion won) in 2014. On the other hand, its imports of consumer goods showed an average annual growth rate of 10.1 percent, rising from US$8.16 billion (9.11 trillion won) to US$46.16 billion (51.51 trillion won) during the same period. Accordingly, the country’s trade balance in consumer goods marked a surplus of US$11.52 billion (12.86 trillion won) in 1995, but shifted to a deficit of US$21.73 billion (24.25 trillion won) in 2014.

By region, South Korea’s trade balance in consumer goods with Asian countries posted a deficit of US$3.9 billion (4.35 trillion won) in 2005 and US$11.08 billion (12.37 trillion won) in 2014, increasing 2.8 times. The deficit of its trade balance in consumer goods with European countries also expanded by 66.7 times from US$120 million (133.92 billion won) to US$8 billion (8.93 trillion won) over the same period.  The country’s trade balance in consumer goods with North America and South America recorded a surplus of US$3 billion (3.35 trillion won) and US$790 million (881.64 billion won) in 1995, respectively, but turned to a deficit of US$2.87 billion (3.2 trillion won) and US$550 million (613.8 billion won) in 2014, respectively. 

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