- South Korea exports drop due to U.S. tariffs.
- Automobile sector faces significant pressure.
- Semiconductors reach record high due to global demand.
South Korea experienced a 1.3% year-on-year decline in exports in May 2025, largely influenced by the uncertainty surrounding U.S. tariffs, according to the Ministry of Trade.
Trade frictions between the U.S. and South Korea hold significant implications for South Korean exports, affecting key sectors like automobiles but less so digital currencies.
South Korea’s May exports amounted to $57.27 billion, declining by 1.3% year-on-year, mainly due to the U.S. imposing 25% tariffs on key industries like automobiles. The Hyundai Motor Group is counteracting this by expanding U.S. manufacturing to reduce impacts. Exports to the U.S. — down 8.1% — significantly affected South Korea’s automotive sector, with vehicle export values declining due to the tariffs. On the other hand, semiconductor exports surged by 21.2% to $13.8 billion driven by high demand for tech components. Despite the physical trade impact, digital assets like cryptocurrencies are reportedly unscathed, with no direct link reported between South Korea’s export performance and crypto markets. Potential consequences of continued tariff pressure include shifts in trade strategies, regulatory adaptations, and manufacturing realignments. Analysts highlight that while physical goods are impacted, digital assets show resilience, reflecting existing trends from previous similar trade tensions.
“We are seeing a concerning decline in overall exports, with key sectors like automobiles significantly impacted due to U.S. tariff actions.” – Ministry of Trade, Industry and Energy, Government of South Korea
