Korean food exporter’s booth at Thaipex, F&B expo in Thailand (Courtesy of GS25)
South Korea is projected to reap more than $100 billion from selling the country’s consumer goods overseas this year after such products’ exports last year hit a record high thanks to the unwavering global demand for Korean pop culture, said Korea’s state-run trade and investment promotion organization.
According to a report released by the Korea Trade Investment Promotion Agency (KOTRA) this week, Korea’s consumer goods exports amounted to a record high of $99.2 billion in 2023, up 15.5% from the prior year and extending the growth streak for three consecutive years.
The milestone comes after the country’s overall exports last year fell 7.5% over the same period.
The gain was mainly driven by brisk sales of Korean cars, food and beverages and agricultural goods, according to the report.
Of the total value, the country’s conglomerates’ outbound shipments accounted for more than 60%, with auto and appliance exports hitting $58.4 billion and $6.6 billion, respectively.
Of 19 mainstay export items, 13, such as cosmetics, agricultural products and processed food and beverages, were, however, shipped by small and medium enterprises.
(Graphics by Dongbeom Yun)
Thanks to the ongoing global Hallyu, or Korean Wave, sensation, Korea-made beauty and products – mainly produced by SMEs, led the growth in Korea’s overall consumer goods exports, according to KOTRA.
“It is time to expand support to enhance the competitivity of products made by Korean SMEs, which are gaining in popularity across the world,” said Lee Ji-hyung, head of the International Trade & Economic Collaboration Division at KOTRA.
“KOTRA will provide them with in-depth market research and on-the-ground overseas intelligence to enable our country to achieve $100 billion in consumer goods exports earlier this year.”
DEMAND FOR KOREAN GOODS ON A STEADY RISE
Korean consumer goods expanded their presence in key export markets despite a fall in overall imports in those markets, according to the data.
The global top 10 consumer goods importers saw their total import value down 0.6% to $2.5 trillion last year from a year ago due to a slowdown in the global economy, according to data from UN Comtrade.
(Courtesy of Yonhap)
The key importers are the US, Germany, China, the UK, France, Italy, the Netherlands, Canada, Spain and Belgium.
But exports of Korean retail products to those countries jumped 23.4% to $59 billion over the same period, increasing Korean goods’ share in those markets to 2.3% from 1.9%.
During the cited period, Korean consumer goods’ exports to the US added 32% to $36.5 billion, upping their presence in the world’s biggest consumer market to 4.3% from 3.1%.
But their shipments to China dropped 5.6% to $5.4 billion, extending the losing streak.
This suggests Asia’s fourth-largest economy should diversify export destinations for the country’s consumer goods with diverse products and tailored marketing strategies, KOTRA said.
By Sang Hoon Sung
uphoon@hankyung.com
Sookyung Seo edited this article.
