Automobile Industry Records Record-High Trade Surplus of USD 63.5 Billion for 2013

The automobile industry (including car parts) recorded a record-high trade surplus of USD 63.5 billion for 2013, with exports of USD 74.7 billion and imports of USD 11.2 billion, strengthening its position as the Korean industry with the largest trade surplus.

In terms of exports, the industry achieved record-high results (USD 74.7 billion) as the shares of large-sized passenger vehicles and RVs with high added value in exports increased and the quality competitiveness and the presence of domestic cars improved, despite the increasing share of imported cars in the domestic market.

At USD 63.5 billion, this is the largest trade surplus in the history of Korea’s auto industry, and marks the 30th consecutive year of trade surplus since the first surplus (USD 0.01 billion) in 1984.

Production and exports of finished cars decreased by 10.3% and 9.9%, respectively, in January 2014, due to there being two less operating days than in the same month of the previous year, while domestic sales of finished cars increased by 4.0%.

More notably, domestic sales turned around within five months since last August, prompted by an improvement of consumer sentiment and the effects of new product launches, despite a reduction in the number of operating days, which signals the recovery of the domestic market for the year. In addition, the favorable trend is expected to continue as key models will be launched and demands for RVs will grow.

The Ministry of Trade Industry and Energy (Minister Yoon Sang-jick) announced that the trade surplus of the automobile industry (including car parts) for 2013 was USD 63.5 billion, a record high, with exports of USD 74.7 billion and imports of USD 11.2 billion.

Despite the growth of imported car sales in the domestic market, the industry recorded the largest exports in its history as the shares of large-sized vehicles (modelbased) and RVs with high added value in exports increased, the quality competitiveness of domestic cars improved, the presence of domestic cars improved and the supply of parts to overseas plants and global businesses was increased.

The automobile industry significantly contributed to Korea’s trade surplus by recording a trade surplus for 30 consecutive years since 1984, and the amount of the surplus has continuously increased.

The share of imported key car parts was large and there was no strategic export model, which led to a trade deficit by 1984. Strategic models for export were launched and a trade surplus has been recorded since 1984.

Since 2001, small-sized vehicles recorded price increases based on improved quality, and exports of midsized vehicles, large-sized vehicles and RVs increased with larger trade surpluses, making the automobile industry the Korean industry with the largest trade surplus.

The automobile industry is expected to continuously drive the national economy if quality is improved through strengthened R&D efforts, exports of vehicles with high added value are increased and a reasonable labormanagement culture is fostered for co-prosperity. In terms of the status of production and exports, production decreased by 10.3% year-on-year to 368,243 units due to a reduction in operating days (2 days shorter) and sluggish exports, while exports decreased by 9.9% year-on-year to 256,052 units due to decreasing supplies to key clients caused by the tapering of the US quantitative easing policy.

By Kim Min-su : Here