South Korea’s car exports witnessed a remarkable surge in 2023, recording a 31 percent increase compared to the previous year. This growth was driven by a rising global demand for premium eco-friendly automobiles, according to data released by the Ministry of Trade, Industry, and Energy.
The total value of outbound shipments of cars from South Korea reached an impressive US$70.9 billion in 2023, up from $54.1 billion in the previous year. Notably, eco-friendly cars accounted for a substantial portion of this figure, with their exports reaching a record high of $24.2 billion, marking a significant 50 percent increase over the period.
The average price of each car exported also saw a notable uptick, reaching $23,000—a 9.5 percent increase and an all-time high level. Despite concerns surrounding the U.S. Inflation Reduction Act, the South Korean government actively engaged in discussions with Washington to ensure that local eco-friendly cars remained eligible for subsidies of up to $7,500 when used for lease or rental purposes, as stated by the Ministry of Trade, Industry, and Energy.
In terms of volume, South Korea shipped 2.76 million units of cars in 2023, marking a substantial 20.3 percent increase compared to the previous year. The destination of these exports was diverse, with North America leading the pack with a 44.7 percent surge in imports valued at $36.9 billion. The European Union followed with imports totaling $10.8 billion, reflecting a robust 32.9 percent increase. Exports to Asian countries and the Middle East also saw significant growth, reaching $5.68 billion (up 28.7 percent) and $5.48 billion (up 13 percent), respectively.
Despite the impressive performance in exports, the domestic sales of automobiles in South Korea saw a more modest increase of 3.3 percent, totaling 1.73 million units in 2023. However, the domestic production of automobiles in the country surged by 13 percent, reaching 4.24 million units—a testament to South Korea’s position as a major player in the global automotive industry.
The month of December also witnessed positive trends, with South Korea’s car exports reaching $6.3 billion—an increase of 17.9 percent compared to the same period the previous year. Domestic production rose by 4 percent to 367,622 units, while sales experienced a slight decline of 11 percent, totaling 143,249 units.
South Korea’s impressive performance in the automotive sector in 2023 not only underscores the country’s strong position in the global market but also highlights its commitment to sustainable and eco-friendly transportation solutions. As the demand for such vehicles continues to grow worldwide, South Korea is well-positioned to capitalize on this trend and further solidify its reputation as a leading exporter of high-quality automobiles.
(Source: Kang Yoon-seung | Yonhap News Agency)
