Recently, the South Korean economy has shown positive signs of recovery, especially in its foreign exports. According to the latest data released by the South Korean Customs, in the first 20 days of April 2024, South Korean exports reached $35.8 billion, up 11.1% compared to the same period. In addition, imports grew by 6.1% compared to $38.5 billion. Despite the challenges of a trade deficit, South Korean exports remain strong, especially in semiconductor and technology products.

This growth trend not only reflects the gradual recovery of the global economy, but also highlights the core position of South Korea in the global supply chain. As one of the world’s largest exporters of high-tech products, its economic trends are often viewed as the sunshine of global economic health. Over the past few months, Korean semiconductor exports have increased dramatically by 43%,ining a two-digit growth for five consecutive months, which not only shows strong demand for Korean technology products, but also predicts an increase in the global market’s desire for high-tech products.

In addition, South Korea’s passenger car exports also showed a strong growth of 12.8 per cent, while oil and precision equipment exports grew by 14.8 per cent and 6.2 per cent, respectively. However, some sectors such as steel, automotive parts and ship exports fell by 2.5 per cent, 0.9 per cent and 16.7 per cent, respectively, showing the complexity and volatility of market demand.

Other Asian countries also showed positive export growth momentum. For example, Vietnam’s commodity exports grew by 17% over the period from 1st to 3rd of 2024, showing an increase in the country’s competitiveness in the global market. Japan’s exports also showed growth for four consecutive months, with exports growing by 7.3% over the same period in March, largely due to strong shipments of automobiles and semiconductors.

The growing global demand for artificial intelligence and other technology-driven development provides huge market opportunities for Asian producers, South Korea. For example, Samsung Electronics, as a global tech giant, has made a significant contribution to the growth of South Korea’s exports in the semiconductor and smartphone sectors. In addition, South Korea’s exports to the United States increased by 22.8 percent, and China’s exports increased by 9 percent, further confirming South Korea’s important position in global trade.

However, the uncertainty of the global economic recovery, geopolitical tensions and changes in U.S. monetary policy, may have an impact on the Korean economy. The fluctuation in the currency rate of the Korean dollar against the Korean dollar also presents challenges and opportunities for Korean exporters. While the weakening of the Korean dollar may help boost the profits of the exporters, it can also increase the cost of enterprises that rely on imported raw materials, thereby affecting domestic inflation.