ASEAN becomes key export market for South Korea amid global trade tensions

SOUTH Korea is increasingly turning to the Association of Southeast Asian Nations (ASEAN) as a primary export destination, as trade with China and the United States continues to contract under the weight of ongoing global trade disputes and shifting supply chain strategies, recent data reveals.

According to figures released by the Korea International Trade Association (KITA), South Korea’s exports to ASEAN nations rose by 4.3 per cent year-on-year to US$47.88 billion in the January–May period. In contrast, shipments to the US and China dropped 4.3 per cent and 5 per cent respectively over the same timeframe.

The data highlights a notable milestone in February, when South Korea’s exports to ASEAN amounted to US\$9.56 billion, narrowly surpassing exports to China at US\$9.5 billion. It marked the first time in 23 years that ASEAN eclipsed China as South Korea’s top monthly export market. The trend continued in March, with ASEAN-bound exports reaching US\$10.26 billion compared to US\$10.06 billion to China.

While shipments to ASEAN dipped slightly by 1.3 per cent in May to US\$10 billion, they remained comparatively more resilient than exports to the US and China, which declined by 8.4 per cent and 8.1 per cent respectively.

The shift in trade patterns comes amid the global move to reduce over-reliance on Chinese manufacturing. The Korea Trade-Investment Promotion Agency (KOTRA) has identified ASEAN as a high-potential export destination, citing the region’s expanding middle class, rapid digital growth, and industrial development.

KOTRA noted promising opportunities for South Korean exporters in areas such as semiconductors, consumer electronics, household appliances, robotics, electric vehicle battery components, and renewable energy infrastructure.

"Amid the decoupling between the US and China, China is increasingly working to expand its presence in the ASEAN market. ASEAN will become a more important market in the future with the US, too, shifting its source of imports from China to ASEAN," said Austin Chang, president of the Institute for International Trade under KITA.

Trade analysts suggest that ASEAN’s strategic importance in global trade is set to grow, positioning the region as a crucial alternative for both manufacturing and export expansion amid intensifying US-China economic rivalry. - June 15, 2025