Share of Korean Added Value Exports Bigger in G7 Countries than BRIC

The weight of Korea’s value-added criteria exports, which are created directly through exports, is reportedly much bigger in G7 countries than in Brazil, Russia, India, and China (BRIC). It indicates that Korea’s target countries for exports are advanced economies. With developed countries’ economic recovery kicking into high gear, it can be interpreted as a positive sign for exports. 

Lee Chul-hee, a researcher at Tongyang Securities, said that BRIC countries made up 33.6 percent (China representing 28.3 percent) of Korea’s nominal exports as of May 2013, well above the figure for G7 countries (21.5 percent). These remarks were made at a seminar on Feb. 21 organized by the Korea Semiconductor Industry Association. 

However, G7 nations accounted for 38.2 percent, 12.8 percent higher than BRIC members (25.4 percent) under a value-added calculation.

The percentage of outbound shipments to other countries was more or less 40 percent both in the nominal and value-added criteria. 

The researcher added that according to UN data, Korea is one of the four powerful nations in the manufacturing sector, already overtaking developed countries in the mid-2000s, including the UK, France, Italy, and Canada, but not Japan, the US, and Germany.