SEOUL: South Korea's exports grew at a faster pace in December, beating market expectations, and ended the year with a record performance, trade data showed on Wednesday, though risks loom in the year ahead.
Exports by Asia's fourth-largest economy rose 6.6 per cent in December from a year earlier, compared with a gain of 1.4 per cent in November and 4.0 per cent forecast in a Reuters survey of economists.
It was the 15th consecutive month exports grew in annual terms and the fastest increase since September, after four straight months of slowing amid worries over U.S. trade policy changes.
"The government will team up with the private sector to minimise any negative impact from external uncertainty of the incoming U.S. administration and maximise new opportunities," said Trade Minister Ahn Duk-geun.
U.S. President-elect Donald Trump has pledged to impose big tariffs on imports from three major trading partners - Mexico, Canada and China - which are expected to affect South Korean firms running factories in those countries and weigh on global trade.
Last year, South Korea's exports rose 8.2 per cent, the fastest in three years, after a fall of 7.5 per cent in 2023. Its total sales of US$683.8 billion for the year was a record high.
Shipments to China, which has been South Korea's biggest export market since 2003, rose 6.6 per cent to US$133.0 billion, while U.S.-bound shipments narrowed the gap by rising 10.5 per cent to US$127.8 billion.
In December, exports to the United States rose 5.5 per cent, the fastest since August, and posted a record monthly value of US$11.9 billion. Exports to the European Union jumped 15.1 per cent, extending gains to a fifth month, while those to China rose 8.6 per cent.
Exports of semiconductors rose 31.5 per cent last month to US$14.5 billion, also a monthly record high, but car sales fell 5.3 per cent due to strikes at major automakers and delays in parts supplies due to heavy snow.