South Korea Records 7.4% Export Decrease in 2023

The growth in South Korean exports picked up last month, marking a robust finish to 2023 and adding optimism to the outlook for economic growth this year. South Korea's exports increased 14.5% in December 2023 and 5.1% for the whole year, resulting in a trade surplus of $4.5 billion. The growth was driven by a recovery in demand for its products, particularly electronics and automobiles. The semiconductor exports turned a corner in November, rising for the first time in 16 months as slump in semiconductor demand began to ease. The recovery is expected to continue, driven by the release of new mobile products and increased corporate investments in the artificial intelligence sector. South Korea's chip exports returned to growth in November after more than a year of declines, and are anticipated to maintain a recovery down the road. South Korea's exports will probably rise by 7.9% in 2024, reaching $680 billion, according to base-case forecasts by the Korea International Trade Association.