Archive:South Korea-EU - international trade in goods statistics

Data extracted in March 2021 Planned article update: March 2022

Highlights

In 2020, South Korea was the ninth largest partner for EU exports of goods (2.3 %) and the eighth largest partner for EU imports of goods (2.6 %).

Among EU Member States, Germany was both the largest importer of goods from and the largest exporter of goods to South Korea.

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This article provides a picture of the international trade in goods between the European Union (EU) and South Korea. It analyses the type of goods exchanged between the two economies and the shares of each EU Member State in those exchanges.

This article is part of an online publication providing recent statistics on international trade in goods, covering information on the EU's main partners, main products traded, specific characteristics of trade as well as background information.

Full article

Recent developments, impact of COVID-19

The COVID-19 crisis caused both exports and imports between the EU and South Korea to fall in 2020. Exports reached a minimum of EUR 3.0 billion in April 2020. By December 2020 they had recovered to EUR 4.1 billion. Imports reached a minimum of EUR 3.2 billion in August 2020. By December 2020 they had recovered to EUR 4.2 billion.

Figure 1: EU trade in goods with South Korea, 2019-2020
Source: Eurostat (ext_st_eu27_2020sitc)

Figure 2 compares trade with South Korea to trade with other non EU countries. Between January 2019 and December 2020, exports to South Korea increased by 14.9 % while exports to other non EU countries decreased by 2.9 %. Imports from South Korea increased by 0.2 % while imports from other non EU countries decreased by 10.1 %. Compared to the same month the previous year exports to South Korea (- 16 %) and to other non EU countries (- 29 %) dropped most in April 2020. For imports the timing was different. Imports from South Korea dropped most in August 2020 (- 24 %) while imports from non EU countries had their worst month in April (- 21 %).

Figure 2: EU trade in goods with South Korea and other non-EU countries, 2019-2020
Source: Eurostat (ext_st_eu27_2020sitc)

EU and South Korea in world trade in goods

Figure 3a shows the position of South Korea among the largest traders of goods in the world in 2019. The four largest exporters were China (EUR 2 233 billion, 16.1 %), the EU (EUR 2 132 billion, 15.4 %), the United States (EUR 1 468 billion, 10.6 %) and Japan (EUR 630 billion, 4.6 %). The four largest importers were the United States (EUR 2 293 billion, 16.1 %), the EU (EUR 1 940 billion, 13 .7%), China (EUR 1 857 billion, 13.1 %) and Japan (EUR 644 billion, 4.5 %). Figure 3b has some more details. It shows that South Korea (EUR 484 billion, 3.5 %) was the fifth largest exporter in the world between Japan (EUR 630 billion, 4.6 %) and Hong Kong (EUR 478 billion, 3.5 %). It was the seventh largest importer in the worldSouth Korea (EUR 450 billion, 3.2 %) between Hong Kong (EUR 516 billion, 3.6 %) and India (EUR 434 billion, 3.1 %).

Figure 3a: South Korea among the world's largest traders of goods, 2019
Source: Eurostat (ext_lt_introeu27_2020) and UNCTAD

Top traders in goods with a focus on South Korea, 2019 (EUR billion)
Source: Eurostat (ext_lt_introeu27_2020) and UNCTAD

The imports and exports of goods of the EU and South Korea indexed at 100 in 2009 for the period to 2019 are shown in Figure 4. It also shows the cover ratio (exports / imports) for this period. Exports from the EU were lowest in 2009 (100) and highest in 2019 (180). Imports to the EU were lowest in 2009 (100) and highest in 2019 (163). The cover ratio for the EU was lowest in 2011 (97 %) and highest in 2016 (116 %) and was 110 % in 2019. Exports from South Korea were lowest in 2009 (100) and highest in 2018 (166) and were 149 in 2019. Imports to South Korea were lowest in 2009 (100) and highest in 2018 (166) and were 156 in 2019. The cover ratio for South Korea was lowest in 2012 (105 %) and highest in 2016 (122 %) and was 108 % in 2019.

Figure 4: Trade in goods of the EU and South Korea, 2009 to 2019
Source: Eurostat (ext_lt_introeu27_2020) and UNCTAD

Both exports to and imports from South Korea increased between 2010 and 2020.

The position of South Korea among the largest trade partners of the EU in 2020 can be seen in Figure 5a. The four largest export partners of the EU were the United States (18.3 %), the United Kingdom (14.4 %), China (10.5 %) and Switzerland (7.4 %). The four largest import partners of the EU were China (22.4 %), the United States (11.8 %), the United Kingdom (9.8 %) and Switzerland (6.3 %). Figure 3b has some more details. It shows that South Korea (EUR 45 billion, 2.3 %) was the ninth largest export partner of the EU, between Norway (EUR 49 billion, 2.5 %) and Canada (EUR 33 billion, 1.7 %). In imports South Korea (EUR 44 billion, 2.6 %) was the eighth largest partner of the EU, between Japan (EUR 55 billion, 3.2 %) and Norway (EUR 42 billion, 2.5 %).

Figure 5a: South Korea among the EU's main partners for trade in goods, 2020
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

Figure 5b: Top trade in goods partners of the EU with a focus on South Korea, 2020 (EUR billion)
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

Figure 6 shows the exports, imports and trade balance between the EU and South Korea from 2010 to 2020. In 2010, the EU had a trade deficit with South Korea of EUR 10 billion. This changed more than once during the whole period. In 2020 there was a surplus of EUR 1 billion. Both exports to and imports from South Korea increased between 2010 and 2020. EU exports to South Korea were highest in 2020 (EUR 45 billion) and lowest in 2010 (EUR 25 billion). EU imports from South Korea were highest in 2019 (EUR 47 billion) and lowest in 2013 (EUR 32 billion).

Figure 6: EU trade in goods with South Korea, 2010-2020 (EUR billion)
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

EU-South Korea trade by type of goods

The breakdown of EU trade with South Korea by SITC groups is shown in Figure 7. The red shades denote the primary products: food & drink, raw materials and energy, while the blue shades show the manufactured goods: chemicals, machinery & vehicles and other manufactured goods. Finally, other goods are shown in green. In 2020, EU exports of manufactured goods (89 %) had a higher share than primary goods (9 %). The most exported manufactured goods were machinery & vehicles (52 %), followed by other manufactured products (21 %) and chemicals (16 %). In 2020, EU imports of manufactured goods (96 %) also had a higher share than primary goods (3 %). The most imported manufactured goods were machinery & vehicles (57 %), followed by chemicals (21 %) and other manufactured products (18 %).

Figure 7: EU trade with South Korea by product group, 2010 and 2020 (EUR billion)
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

Figure 8 shows the evolution of EU imports and exports by SITC group since 2010. In 2020, the EU had trade surpluses in food & drink (EUR 2.4 billion), other manufactured products (EUR 1.4 billion), raw materials (EUR 0.5 billion) and other products (EUR 0.5 billion). The EU had trade deficits in energy (EUR 0.2 billion), machinery & vehicles (EUR 1.6 billion) and chemicals (EUR 1.8 billion).

Figure 8: EU trade with South Korea by group, 2010-2020 (EUR billion)
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

EU-South Korea most traded goods

More detail about the goods exchanged between the EU and South Korea is given in Figure 9, showing the 20 most traded goods at SITC-3 level. These top 20 goods covered 58 % of total trade in goods in 2020. 13 belonged to machinery and vehicles, four to chemicals, two to other manufactured products and one to energy. The most traded product group at this level was motor cars and motor vehicles. Another interesting way to look at the data is to investigate the cover ratio (exports / imports) of traded goods, showing the direction of the trade flows between the two economies. These ratios can be found in the right-hand margin of Figure 9. Eight products were below 50 %, indicating EU imports from South Korea were at least twice as large as EU exports to South Korea. Five products were above 200 %, indicating EU exports to South Korea were at least twice as large as EU imports from South Korea. Seven products were between 50 % and 200 %, showing more balanced trade.

Figure 9: Most traded products between EU and South Korea, 2020 (EUR billion)
Source: Eurostat DS-018995

Trade with South Korea by Member State

Table 1a shows the imports of goods from South Korea by Member State. The three largest importers from South Korea in the EU were Germany (EUR 8 978 million), the Netherlands (EUR 5 588 million) and Poland (EUR 4 086 million). Slovakia (19.4 %) had the highest share for South Korea in its extra-EU imports.

Table 1a: EU imports of goods from South Korea, 2020
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

Table 1b shows the exports of goods to South Korea by Member State. The three largest exporters to South Korea in the EU were Germany (EUR 18 138 million), the Netherlands (EUR 6 718 million) and France (EUR 4 812 million). Netherlands (3.3 %) and Germany (3.2 %) had the highest share for South Korea in their extra-EU exports.

Table 1b: EU exports of goods to South Korea, 2020
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

The trade in goods balance between the EU Member States and South Korea is shown in Table 1c. It shows that eleven Member States had a trade surplus with South Korea. The largest surplus was held by Germany (EUR 9 160 million), followed by France (EUR 1 743 million) and Italy (EUR 1 550 million). There were 16 Member States that had a trade deficit with South Korea. The largest deficit was held by Poland (EUR 3 440 million), followed by Hungary (EUR 3 361 million) and Slovakia (EUR 2 488 million).

Table 1c: EU trade balance of goods with South Korea, 2020 (EUR million)
Source: Eurostat (ext_st_eu27_2019sitc) and Comext DS-018995

Source data for tables and graphs

EU - South Korea international trade in goods statistics - graphs and tables

Data sources

EU data is taken from Eurostat's COMEXT database. COMEXT is the reference database for international trade in goods. It provides access not only to both recent and historical data from the EU Member States but also to statistics

of a significant number of third countries. International trade aggregated and detailed statistics disseminated via the Eurostat website are compiled from COMEXT data according to a monthly process.

Data are collected by the competent national authorities of the Member States and compiled according to a harmonised methodology established by EU regulations before transmission to Eurostat. For extra-EU trade, the statistical information is mainly provided by the traders

on the basis of customs declarations.

EU data are compiled according to Community guidelines and may, therefore, differ from national data published by the Member States. Statistics on extra-EU trade are calculated as the sum of trade of each of the 27 EU Member States with countries outside the EU. In other words, the EU is considered as a single trading entity and trade flows are measured into and out of the area, but not within it.

The United Kingdom is considered as an extra-EU partner country for the EU-27 for the whole period covered by this article. However, the United Kingdom was still part of the internal market until the end of the transitory period (31 December 2020), meaning that data on trade with the United Kingdom are still based on statistical concepts applicable to trade between the EU Member States. Consequently, while imports from any other extra-EU-27 trade partner are grouped by country of origin, the United Kingdom data reflect the country of consignment. In practice this means that the goods imported by the EU-27 from the United Kingdom were physically transported from the United Kingdom but part of these goods could have been of other origin than the United Kingdom. For this reason, data on trade with the United Kingdom are not fully comparable with data on trade with other extra-EU-27 trade partners.

Data for the non EU-27 countries used in figures 1-3 are taken from the UNCTAD database of the United Nations. For the calculation of shares, the world trade is defined as the sum of EU trade with non-EU countries (source: Eurostat) plus the international trade of non-EU countries (source: UNCTAD).

Methodology

According to the EU concepts and definitions, extra-EU trade statistics (trade between EU Member States and non-EU countries) do not record exchanges involving goods in transit, placed in a customs warehouse or given temporary admission (for trade fairs, temporary

exhibitions, tests, etc.). This is known as ‘special trade’. The partner is the country of final destination of the goods for exports and the country of origin for imports.

Product classification

Information on commodities exported and imported is presented according to the Standard international trade classification (SITC). A full description is available from Eurostat’s classification server

RAMON.

Unit of measure

Trade values are expressed in millions or billions (10⁹) of euros. They correspond to the statistical value, i.e. to the amount which would be invoiced in the event of sale or purchase at the national border of the reporting country. It is called a FOBvalue (free on board) for exports and a CIF value (cost, insurance, freight) for imports.

Context

Trade is an important indicator of Europe’s prosperity and place in the world. The bloc is deeply integrated into global markets both for the products it sources and the exports it sells. The EU trade policy is one of the main pillars of the EU’s relations with the rest of the world.

Because the 27 EU Member States share a single market and a single external border, they also have a single trade policy. EU Member States speak and negotiate collectively, both in the World Trade Organization, where the rules of

international trade are agreed and enforced, and with individual trading partners. This common policy enables them to speak with one voice in trade negotiations, maximising their impact in such negotiations. This is even more important in a globalised world in which

economies tend to cluster together in regional groups.

The openness of the EU’s trade regime has meant that the EU is the biggest player on the global trading scene and remains a good region to do business with. Thanks to the ease of modern transport and communications, it is now easier to produce, buy and sell goods

around the world which gives European companies of every size the potential to trade outside Europe.