Exporting to South Korea

South Korea was the seventh largest market for U.S. exporters in 2010, with an export total of $36.8 billion – up 36 percent over 2009.  Machinery for semi-conductor devices, optical and medical instruments, civilian aircraft, engines and parts, organic chemicals, and cereals are among the top export categories.  South Korea’s $1 trillion economy, which is primarily an export-driven market, is the third largest market in Asia behind Japan and China and was the 13th largest world economy in 2010.  The country’s economy is expected to continue its upward ascent into 2011.

Korea’s growing economy: The Republic of Korea is one of the first countries to recover from the global financial crisis.  The economy began to rebound in the third quarter of 2009 due to export growth, low interest rates and a public sector stimulus.  With continued improvement in the global economic environment, increased business and consumer confidence in Korea, and a 27% increase in industrial production year on year, GDP grew by estimated 6.1% in 2010.  GDP growth for 2011 should average about 4.0%, although real GDP growth will be somewhat slowed by inflation.  Korea’s reliance on export-generated growth and its continued demand for foreign direct investment and technology inputs suggests that Korea will remain a strong trading partner in Asia.  Trade between Korea and the United States in 2010 reached USD 70.2 billion, a gain of 36% over 2009.  The turnaround of the Korean economy can be linked to reforms the Government of Korea introduced during the Asian financial crisis of 1997-1998.  The experiences learned during that crisis have helped Korea weather the economic and trade uncertainties of the previous two years better than most countries.

U.S.-Korea trade is highly diversified, reflecting a broad spectrum of products and services that satisfy sophisticated consumer needs and state of the art industrial demands.  Over one-third of all bilateral trade can be categorized as “advanced technology products”.  Over the past decade, U.S. exports have supported product development and other forms of R & D in Korea, setting the stage for long-term relationships with Korean partners in high market potential sectors such as energy, medicine, transportation, and telecommunications.

Exporting Food and Agricultural Products to South Korea:
Korea now has a population of over 48 million and GDP per capital of $28,000 (2009 est.)  Rising economic prosperity over the years has resulted in South Korean consumers, increasingly turning to food imports to satisfy its consumers’ demands for greater food variety, lower prices, and convenience.  As a consequence, the county has become a major food importer with limited resources to expand its domestic agricultural capacity, though it has increased investment in overseas agribusiness holdings.

The United States is already South Korea’s top supplier of a broad range of agricultural, fishery, and forestry products with exports totaling %5.8billion in 2010, making South Korea the fifth largest export market for U.S. farm products.  U.S. agricultural exports to South Korea are expected to continue their upward climb in 2011 as the country’s economy continues to grow.

Korean Agriculture: 3 percent of GDP

Korea Agricultural Production: rice, root crops, barley, vegetables, fruit, cattle, pigs, chickens, milk, eggs, fish

Major U.S. Exports to South Korea: corn, wheat, hides and skins, soybeans, pork, beef, and horticulture products

Major U.S. Imports from South Korea: seafood, ramen noodles, non-alcoholic beverages, snack foods, and pear

Read more in the Country Commercial Guide for Korea