South Korea Balance of Trade

South Korea's trade surplus increased to USD 6.94 billion in May 2025, up from USD 4.86 billion in the same month a year earlier, and surpassing market expectations of USD 4.61 billion, preliminary data showed. It was the largest trade surplus since June 2024, as exports declined less sharply than imports. Exports fell 1.3% yoy, compared to forecasts of a 2.7% drop, reversing a 3.7% gain in the prior month. The decline was largely attributed to the impact of US President Trump's tariffs. Shipments to the US plunged 8.1%, driven by weak performance in the automotive sector, which was hit by Trump’s 25% tariffs. Exports to South Korea’s largest trading partner, China, also slumped by 8.4%. Meanwhile, imports contracted by 5.3% in May, following a 2.7% decrease in April, and exceeding market expectations of a 3.1% drop. The decline was mainly driven by a sharp fall in energy imports (-12.8%) to USD 10.1 billion, with crude oil imports shrinking by 14.0% and gas imports by 0.3%.