The FINANCIAL — The value of European Union (EU) exports of goods to South Korea has more than doubled over the period 2004-2014, from €17.9 bn in 2004 to a peak of €43.2 bn in 2014. Imports show a more varied trend over this 10-year time period. In2014 they amounted to €39.0 bn, up by 9% compared with 2013 but still below the peak reached in 2007 (€41.7 bn). As a result, the EU trade balance with South Korea, which had constantly been in deficit from 2004 to 2012, has turned into a surplus for the last two years and stood at +€4.1 bn in both 2013 and 2014.
Accounting for around 2.5% of total extra-EU trade in goods, South Korea is the eighth most important EU trading partner, just behind Japan and ahead of India. Over the last decade, the share of South Korea in extra-EU exports increased from 1.9% in 2004 to 2.5% in 2014, while its share in imports dropped from 3.0% in 2004 to 2.3% in 2014.
On the occasion of the European Union – South Korea summit, which will take place on 15 September in Seoul, Eurostat, the statistical office of the European Union, issues data on trade in goods between South Korea and the EU.
Manufactured goods dominate both imports and exports
EU trade in goods with South Korea is clearly dominated by manufactured goods, which accounted for 84% of total EU exports to South Korea and 92% of EU imports from South Korea in 2014. The €4.1 bn surplus recorded by the EU for its total trade of goods with South Korea is mainly driven by primary goods (+€2.9 bn) and chemicals (+€2.3 bn), while the EU recorded a deficit for machinery and vehicles (-€2.5 bn).
Germany, main EU trading partner with South Korea for both exports and imports
Among the EU Member States, Germany (€15.7 bn or 36% of EU exports of goods to South Korea) was by far the largest exporter to South Korea in 2014, followed by the United Kingdom (€5.1 bn or 12%), France (€5.0 bn or 12%), Italy (€4.2 bn or 10%) and the Netherlands (€3.8 bn or 9%, partially due to the “Rotterdam effect”). Compared with 2013, exports to South Korea increased for each of these five largest partners, except the United Kingdom. At EU level, exports of goods to South Korea grew by 8% in 2014.
Germany (€6.8 bn or 17% of EU imports of goods from South Korea) was also the largest importer from South Korea in 2014, ahead of the United Kingdom (€4.5 bn or 12%), the Netherlands (€3.7 bn or 9%, partially due to the “Rotterdam effect”) and Slovakia (€3.5 bn or 9%). Overall, EU imports of goods from South Korea grew by 9% in 2014. This increase was mainly driven by the rises of imports from South Korea recorded in the United Kingdom, Greece and Denmark.
Sixteen EU Member States recorded a deficit in trade with South Korea in 2014, with the largest being recorded in Slovakia (-€3.4 bn), Poland (-€2.2 bn), Greece (-€1.2 bn), the Czech Republic and Slovenia (both -€1.1 bn). In contrast, the highest surplus was observed in Germany (+€8.9 bn), well ahead of France (+€2.8 bn), and Italy (+€1.8 bn).
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