Seoul, Dec 29 (IANS) South Korea’s annual exports surpassed US$700 billion for the first time on Monday, making the country the sixth in the world to reach the milestone, government data showed.

Outbound shipments tentatively exceeded the mark at 1:03 p.m., according to the data from the Ministry of Trade, Industry and Resources and the Korea Customs Service, reports Yonhap news agency.

South Korea followed the United States, Germany, China, Japan and the Netherlands in surpassing the milestone, the ministry said.

While South Korea was the seventh country globally to reach $600 billion in annual exports in 2018, it became the sixth to hit the $700 billion mark, a sign of faster export growth compared with other major economies, the ministry said.

The ministry attributed the strong performance to robust shipments of semiconductors, along with key products such as automobiles, ships and bio-related goods.

By region, exports to the U.S. and China declined in terms of their share in total shipments, while the proportion of shipments to other Asian countries, the European Union and Central and South America increased, reflecting a trend toward market diversification.

Exports by small and medium-sized enterprises hit record highs in both value and number of companies through September, the ministry said.

“Despite a challenging trade environment marked by U.S. tariff measures and trade protectionism, South Korea turned a crisis into an opportunity, underscoring the resilience of our people and businesses,” a ministry official said.

Earlier this year, exports had been expected to struggle amid tariff measures by the Donald Trump administration.

Although outbound shipments declined in the first half of the year, exports rebounded sharply from June as market confidence recovered following the launch of the Lee Jae Myung administration and uncertainties eased after a trade agreement with Washington.

The government said it will work to sustain momentum next year by strengthening the fundamental competitiveness of industries through manufacturing innovation, diversifying export markets and items, and expanding incentives to attract foreign investment to regional areas.

The government also aims to achieve exports of $700 billion and foreign direct investment of more than $35 billion for a second consecutive year.

—IANS

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