Import Growth Doubles Export Growth
The Ministry of Trade, Industry and Energy and the Korea International Trade Association announced on Nov. 3 that South Korea’s trade surplus with the United States fell approximately 6.8 percent on year for the first 10 months of this year after the revised KORUS FTA became effective at the beginning of this year at the request of the United States. Specifically, the trade surplus totaled US$10,005 million during the period.
The ministry and the association explained that the decrease in trade surplus was because the import growth almost doubled the export growth. During the period, South Korea’s exports to the United States increased 2.2 percent on year to US$60,730 million while its imports from the United States added up to US$50,725 million with a year-on-year increase of 4.1 percent.
“South Korea’s exports have shown a negative growth for 11 months in a row, and yet its trade with the United States remains relatively solid as indicated by the export data and the decrease in surplus is nothing to worry about,” they explained, adding, “Rather, the decrease in surplus can be utilized against trade pressure from the United States.” U.S. President Donald Trump is planning to make a decision on Nov. 13 regarding the application of Section 232 of the Trade Expansion Act of 1962 to imported automobiles.