Seoul, Nov 20 (IANS) South Korea’s auto exports decreased 10.5 per cent from a year earlier in October, largely due to fewer business days caused by the extended Chuseok holiday, data showed on Thursday.

The value of outbound shipments of automobiles came to $5.5 billion last month, compared with $6.2 billion the same month last year, according to the data from the Ministry of Trade, Industry and Resources, reports Yonhap news agency.

The value of accumulated auto exports from January to October, meanwhile, reached an all-time high of $59.6 billion.

The ministry said October exports were weak due to the fall harvest Chuseok holiday that fell in early October, unlike in 2024 when the traditional holiday fell in September.

Auto exports in September jumped 16.8 per cent on-year, the ministry said earlier.

By destination, exports to the United States plunged 29 percent on-year to $2.12 billion in October, apparently due to the 25 per cent import tariffs imposed on Korean cars by the Donald Trump administration.

The Trump administration is expected to lower the tariff on Korean cars to 15 per cent as agreed in its trade deal with South Korea after the Seoul government submits a special bill to the National Assembly on the country’s planned $350 billion investment in the U.S. under the bilateral trade agreement reached late last month.

Finance Minister Koo Yun-cheol said Wednesday the government plans to submit the bill before the end of this month, which he said would allow local automakers to enjoy the reduced tariff rate retroactively from the start of the month of its submission.

Shipments to the European Union dipped 2.1 per cent to $746 million last month, and those to the Middle East contracted 13.5 per cent to $403 million.

On the other hand, exports to Asia jumped 42 per cent on-year to $802 million, while shipments to Latin America advanced 23.7 per cent to $290 million.

By type, exports of eco-friendly cars, such as electric vehicles (EVs), hybrid cars and hydrogen cars, gained 0.9 per cent from a year earlier to 64,427 vehicles last month, amounting to a combined value of $2 billion.

In detail, shipments of hybrid cars climbed 3.9 per cent to 42,683 vehicles, and EV exports inched up 0.3 per cent to 19,247 units. Exports of plug-in hybrid cars dropped 30.8 per cent to 2,492 units.

At home, sales of automobiles went down 12.8 per cent on-year to 127,000 units in October.

–IANS

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