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Semiconductors emerged as a key growth driver for South Korea's exports rebound in early June

India Gazette

11-06-2025

Business
India Gazette

Semiconductors emerged as a key growth driver for South Korea's exports rebound in early June

ANI 11 Jun 2025, 12:42 GMT+10 New Delhi [India], June 11 (ANI): South Korea's exports witnessed a robust recovery in the first 10 days of June, climbing 5.4 percent year-on-year, according to the data released by the Korea Customs Service on Wednesday. According to a report in the Korea Herald, this uptick marks a significant shift from May's decline and is largely attributed to strong global demand for semiconductors and the June 1-10 period, outbound shipments totalled USD 15.47 billion, a notable increase from USD 14.68 billion recorded a year earlier. The daily average volume of exports saw an even sharper rise, jumping 15 per cent on-year, despite fewer working days (5.5 days compared to 6 days last year).Semiconductors emerged as a key growth driver, with exports surging 22 per cent to USD 3.62 billion, accounting for a substantial 23.5 per cent of the nation's total outbound shipments. The automotive sector also contributed significantly, with shipments rising 8.4 per cent to USD 1.3 billion. Shipbuilding experienced an impressive boom, skyrocketing 23.4 per cent to USD 896 not all sectors shared in the growth, sales of petroleum products saw a decline of 20.5 per cent, falling to USD 1.11 terms of destinations, exports to China, South Korea's top trading partner, increased by 2.9 per cent to USD 3.06 billion. Shipments to the European Union spiked by 14.5 per cent to USD 1.5 billion, while exports to the United States also saw a modest rise of 3.9 per cent, reaching USD 2.95 the positive start to June, the country remains cautious. An official from the customs agency noted that it 'remains to be seen whether the upward trend in monthly exports will continue.' This comes after a 1.3 percent drop in May's exports, which snapped a three-month winning streak, partly due to US President Donald Trump's tariff measures impacting shipments to the United States. The strong performance in early June provides a hopeful sign for the nation's trade outlook amidst evolving global economic conditions. (ANI)

[Contribution] KCS steps up to navigate ‘fog of war' in global tariffs

Korea Herald

04-06-2025

Business
Korea Herald

[Contribution] KCS steps up to navigate ‘fog of war' in global tariffs

Carl von Clausewitz, the German military theorist, introduced the concept of the "Fog of War" in his seminal work "On War." He described war as a realm of unpredictable uncertainty, where quick and accurate judgment by commanders is crucial amid incomplete information and unforeseen variables. Today, the rapidly shifting US tariff policies and the responses from major economies have created a global trade environment reminiscent of Clausewitz's fog-covered battlefield. In a global economy where visibility is limited and uncertainty prevails, Korean businesses must work to reduce unpredictability while strengthening their strategic decision-making and judgment capabilities. In this context, a clear understanding of tariff classification and rules of origin becomes a crucial first step in navigating the uncertainty sparked by President Trump's tariff policies. Tariff classification is the process of assigning serial numbers to imported and exported goods based on standards set by the World Customs Organization (WCO). These numbers not only determine applicable tariff rates but also dictate various import and export requirements. While WCO provides a unified framework, individual countries often interpret and apply these standards differently. As a result, the same product can be assigned different codes in different countries. Since March, the US has imposed a 25 percent tariff on certain items, including steel and aluminum derivatives. The challenge arises because the US applies these tariffs using its own classification system, the Harmonized Tariff Schedule of the United States (HTSUS). For Korean companies accustomed to Korea's classification system, determining whether their products fall under US tariff targets is not always clear-cut. As tariff differences grow sharper depending on product classification, businesses now face greater pressure to ensure accurate and strategic classification of their goods. The importance of rules of origin has also risen significantly under the evolving US tariff regime. Under the Korea-US Free Trade Agreement, product origin has traditionally been determined using rules such as the change in tariff classification criterion or value content criterion. However, recent US measures have shifted this to the Substantial Transformation Criterion, even for items subject to bilateral tariffs, regardless of FTA rules. Under this standard, US customs authorities determine origin based on whether a product has undergone substantial changes in name, use, or character. The lack of clear, consistent case rulings makes it extremely difficult for businesses to predict outcomes. Moreover, Korean companies may suffer indirect harm — such as customs delays or post-entry verifications — if products from other countries with higher tariff rates are fraudulently labeled as Korean to evade duties. In response to such uncertainty, the Korea Customs Service established the KCS Response Headquarters for Global Tariff Changes and Domestic Industry Protection (K-GTR H.Q.s) on March 28. This task force goes beyond simply providing information. It functions as a comprehensive, proactive unit managing international cooperation, preemptive customs and tax risk assessments, close business support, and crackdowns on illegal circumvention of trade laws. Since its launch, the K-GTR H.Q.s has prioritized resolving uncertainties surrounding tariff classifications and rules of origin while supporting corporate decision-making. It has swiftly distributed correlation charts between Korean and US tariff codes for key items such as steel, aluminum derivatives, automobiles, and auto parts. To further ease classification-related confusion, it introduced fast-track pre-ruling procedures and expanded consultation services with the US tariff classification center. In the area of origin rules, the headquarters has begun immediate information sharing on non-preferential rules of origin and case rulings that can assist business planning. Customized consulting and preventive inspections are also underway to help firms comply. To prevent Korean exports from being harmed by falsely labeled foreign goods, the Korea Customs Service is intensifying inspections — particularly in cooperation with US Customs and Border Protection and industry associations — on critical sectors like steel and furniture, which are vulnerable to origin fraud. Looking ahead, the Korea Customs Service aims to continue serving as a reliable guide for Korean exporters amid the turbulent waves of global tariff conflicts. It plans to provide ongoing classification information for US-targeted sectors such as semiconductors and pharmaceuticals and to roll out notification services for potential violations of origin rules, particularly for companies handling steel and aluminum derivative products. Waiting for the fog to lift will not lead to a path forward. Someone must carry the light and lead the way. The Korea Customs Service pledges to be that light, helping Korean businesses move forward with confidence, even through the haze of uncertainty.

South Korea's trade surplus with US will shrink, exporters say

New Straits Times

29-05-2025

Automotive
New Straits Times

South Korea's trade surplus with US will shrink, exporters say

SEOUL: South Korea's record-high trade surpluses with the United States will gradually narrow as companies continue to invest in the US market, the country's biggest exporter group said on Thursday. "There is a high possibility of trade imbalances between South Korea and the United States gradually easing on continued and prolonged investments in the country," Korea International Trade Association (KITA) said in a report. In 2024, 46.8 per cent of US imports from South Korea were intermediate goods shipped to the country for direct investments, according to KITA. South Korea earned a surplus of US$55.6 billion from trade with the US in 2024, up 25 per cent from 2023 and a record high, led by rising car exports, according to Korea Customs Service data. Seoul has been engaging with Washington since they agreed in mid-April to craft a trade package lowering tariffs by July 8. In the latest working-level discussion last week, Washington demanded that Seoul resolve the large trade imbalance between the two countries, according to local media reports. KITA said South Korea's rising trade surpluses did not result from unfair trade practices. Of the increase of US$36.9 billion in the last three years, US$27.7 billion was related to substitutions of Chinese products within US supply chains, increases in US demand and structural changes in US imports, the business group said.

Reuters

29-05-2025

Business
Reuters

South Korea's trade surplus with U.S. will shrink, exporters say

SEOUL, May 29 (Reuters) - South Korea's record-high trade surpluses with the United States will gradually narrow as companies continue to invest in the U.S. market, the country's biggest exporter group said on Thursday. "There is a high possibility of trade imbalances between South Korea and the United States gradually easing on continued and prolonged investments in the country," Korea International Trade Association (KITA) said in a report. In 2024, 46.8% of U.S. imports from South Korea were intermediate goods shipped to the country for direct investments, according to KITA. South Korea earned a surplus of $55.6 billion from trade with the U.S. in 2024, up 25% from 2023 and a record high, led by rising car exports, according to Korea Customs Service data. Seoul has been engaging with Washington since they agreed in mid-April to craft a trade package lowering tariffs by July 8. In the latest working-level discussion last week, Washington demanded that Seoul resolve the large trade imbalance between the two countries, according to local media reports. KITA said South Korea's rising trade surpluses did not result from unfair trade practices. Of the increase of $36.9 billion in the last three years, $27.7 billion was related to substitutions of Chinese products within U.S. supply chains, increases in U.S. demand and structural changes in U.S. imports, the business group said.

US demands South Korea resolve trade imbalance in recent talks

Free Malaysia Today

26-05-2025

Business
Free Malaysia Today

US demands South Korea resolve trade imbalance in recent talks

South Korea earned a US$55.6 billion surplus from trade with the US in 2024, up 25% from 2023 and a record high. (EPA Images pic) SEOUL : The US demanded that South Korea resolve the large trade imbalance between the countries during recent trade talks, South Korean media reported today. The US repeatedly raised the issue of the trade imbalance in the commodity sector and both countries agreed it was necessary to address it, broadcaster YTN and the Yonhap News Agency reported, citing an unnamed South Korean trade official who was part of the trade delegation. South Korea earned a US$55.6 billion surplus from trade with the US in 2024, up 25% from 2023 and a record high, according to Korea Customs Service data. The two countries held technical consultations about trade in Washington last week. They also discussed non-tariff measures as well as economic security, digital trade, the origin of goods and commercial considerations, the official cited by media said, adding that Washington made specific requests for the first time. 'Seoul, for its part, has continued to push for tariff exemptions,' the official said. South Korea, which is among a few Asia-Pacific countries that have a free trade agreement with the US, has sought exemptions on all tariffs. South Korea's industry and trade minister Ahn Duk-geun said after a second round of ministerial-level talks in mid-May that a request by Alphabet's Google on the transfer of local map data overseas could be part of trade discussions. The US had cited South Korea's restrictions on online platform companies regarding overseas transfers of location-based data in its 2025 trade barrier report released in March. South Korean media has also reported US objections over restrictions on its beef imports and tariffs on rice could be included in talks. The two countries began trade talks in April with Seoul seeking a path to slash the stiff tariffs US President Donald Trump is angling to impose. The trade talks will continue under the next government since South Korea is holding a snap presidential election on June 3.