South Korean exports in 2017 were 574 billion U.S. dollars, up 15.8% from the same period of last year. The trade surplus increased to 96 billion U.S. dollars from 89 billion U.S. dollars in 2016. South Korean exports in December 2017 increased by 8.9% over the same period of previous year, lower than that of economics Average of 9.8% at the end of December 2017. South Korea's imports increased 13% in December 2017, 12% higher than expected, and the trade surplus for the month was 5.8 billion U.S. dollars. In 2017, Korean semiconductor shipments soared 57.4% to 98 billion U.S. dollars.
South Korea's economy of 2017 benefited from a substantial increase in exports, which led Bank of Korea to raise its benchmark interest rate in November last year, the first increase of its benchmark interest rate since 2011. The government of South Korea made the country this year At the same time as the 3% economic growth is expected, the Bank of Korea will make a "cautious decision" on whether monetary easing needs some adjustment.
Huge trade surpluses may continue to motivate President Donald Trump and demand better terms of trade, with the U.S. Treasury listing South Korea on the observer list of exchange rate maneuvers, and in December last year South Korea agreed to amend the agreement with the United States Free trade agreement.
The Korea Ministry of Trade said in its statement that global trade is expected to continue to grow in 2018 due to the global economic recovery and increasing IT demand, but potential negative factors persist, including protectionism, strong won, rising interest rates and Oil prices will rise to an average of 1 U.S. dollar against 1100.8 won against the U.S. dollar in 2018, while the exchange rate is 1 U.S. dollar against 1070.65 won at the end of 2017. Trade protectionism, other countries' monetary policies and geopolitical risks , May result in increased currency volatility.
According to the Ministry of Foreign Trade and Economic Cooperation, South Korea's Ministry of Foreign Trade and Economic Cooperation said that its semiconductor exports to China are expected to increase slightly in the future due to increased investment in Internet of Things and big data businesses. In 2017, South Korea's exports to China increased 14.2% from a year earlier, Exports increased by 10.1%, exports to Vietnam increased by 46.3%.
South Korea's exports to the United States increased by only 3.2% in 2017, while the trade surplus narrowed to $ 18 billion from $ 23.3 billion the previous year.