S. Korea’s Trade Surplus with the United States

https://korean-machinery.com///inquirySouth Korea’s recent trade surplus with the United States declined amid the surge in oil and gas imports from the United States in order to stave off the issue of Korea’s balance of trade issue with the world’s largest economy.
According to the latest data from the Ministry of Trade, Industry and Energy (MOTIE), the nation’s trade surplus with the United States decreased 22.9 percent to $13.8 billion in 2018 from a year ago, even though the bilateral trade increased 10.3 percent to a record high of $131.6 billion.
In the past year, S. Korea’s exports to the United States reached $72.7 billion, up 6.0 percent, which means that it is faster than the country’s overall annual exports gain of 5.4 percent in the year. For some major export players, shipment of semiconductors jumped 90.6 percent, machinery, up 32.4 percent, while petroleum products rose by 15.7 percent.
Auto exports to the United States, meanwhile, decreased 6.9 percent compared with a year earlier. Exports of mobile devices and rubber products fell by 6.2 percent and 2.2 percent, respectively.
The remaining export items from Korea comprised 2.9 percent of the U.S. market in 2018, remaining at an unchanged level over the past four years.
Korea’s imports from the United States grew by 16.2 percent year-on-year to $58.9 billion last year, mainly because of a sharp jump in energy imports to reduce the strong, consistent pressure from the Trump administration.
Last year, Korea’s imports of U.S crude oil skyrocked 520.1 percent compared with the previous year, natural gas by 179.2 percent, and liquefied petroleum gas by 50.3 percent. The global giant economy’s market share in the nation’s energy market reached 11.0 percent, outdoing Japan to become No. 2 seller.
The service area imports between the two countries rose by 7.2 percent year-on-year to $45.2 billion in 2017, the latest comparative data showed. S. Korea’s service exports in 2017 amounted to $14.9 billion, slightly up from $14.6 billion in 2016. Service imports from the United States expanded 10.3 percent year-on-year to $31.3 billion over the same period.
S. Korea’s service trade deficit with the United States grew in 2017 to reach $16.3 billion, and the deficit has increased 20.6 percent on average from 2012 to 2017.

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