Last month, exports to the United States and China fell by more than 8%. Analysis suggests that this was a direct hit from the tariff policy of the Donald Trump administration.
According to the trade trends report for May 2025 released by the Ministry of Trade, Industry and Energy on the 1st, exports last month reached $57.27 billion, a 1.3% decrease compared to the same month last year. Imports totaled $50.33 billion, down 5.3%. The trade balance recorded a surplus of $6.94 billion.
The decline in exports was significantly influenced by the long holiday at the beginning of May. The daily average export amount, considering working days, was $2.66 billion, showing a 1% increase compared to the same month last year.
By region, exports to the United States were $10 billion, representing an 8.1% decrease compared to the same month last year. Despite strong performances in wireless communication devices, petroleum products, and secondary batteries, the decrease continued following April due to a significant drop in automobile exports, the Ministry explained.
Exports to China also decreased by 8.4%, totaling $10.4 billion, as exports of key items like semiconductors and petrochemicals fell. Exports to Japan dropped to $2.38 billion, down 8.7% compared to the same month last year.
Despite a double-digit increase in semiconductor exports to ASEAN, the overall exports decreased by 1.3% to $10 billion due to a sharp drop in petroleum products and petrochemical exports.
However, exports to the European Union (EU) and the Commonwealth of Independent States (CIS) showed a positive trend. Exports to the EU reached $6 billion, an increase of 4.0%, marking three consecutive months of growth, while exports to the CIS rose by 34.7% to $1.2 billion.
In addition to the major nine markets, exports to Taiwan, a key semiconductor exporter, reached $3.8 billion, a 49.6% increase year-on-year, marking the highest performance for the month of May in history.
By item, semiconductor exports recorded the largest-ever performance for May at $13.8 billion, an increase of 21.2%. Amid sustained strong demand for high-value memory products such as high bandwidth memory (HBM) and DDR5, fixed prices also showed an upward trend, continuing the flow of increased exports.
Semiconductor prices for DDR4, DDR5, and NAND have continued to rise compared to the previous month. The Ministry noted that demand for high-value memory products such as HBM for AI servers is also continuously increasing. There have been ongoing moves among corporations to secure inventory due to expectations of rising memory semiconductor prices, leading to predictions that the export trend will remain positive for the time being.
Exports of wireless communication devices recorded $1.3 billion, a 3.9% increase, thanks to strong smartphone exports, which amounted to $420 million, an increase of 30.0%. Exports of wireless communication devices have increased for four consecutive months.
Computer exports, including SSDs, increased by 2.3% to $1.1 billion, marking a return to positive figures. A Ministry official stated, "Exports increased, particularly for high-capacity SSDs for servers, due to expanded investment in AI infrastructure."
Biohealth exports reached $1.4 billion, up 4.5%, supported by a 13.7% increase in bio-pharmaceutical exports, totaling $910 million. Ship exports also grew by 4.3% to reach $2.2 billion.
In contrast, automobile exports totaled $6.2 billion, down 4.4% compared to the same month last year. Exports to the United States saw a significant decline due to tariff measures and the operation of a new factory in Georgia. However, electric vehicle exports to the EU increased, and used car exports surged by 71.0% to $700 million, helping to reduce the overall decline.
Petroleum product and petrochemical exports were $3.6 billion and $3.2 billion, down 20.9% and 20.8%, respectively. The Ministry explained that prices of both items have plummeted amid the continued trend of low oil prices since the Trump administration took office.
Steel exports also decreased by 12.4% to $2.6 billion amid ongoing weak pricing and a decline in demand due to a global slowdown in construction.
Exports of agricultural and fishery products ($1 billion, up 5.5%) and cosmetics ($1 billion, up 9.3%), which are showing strong performance outside the 15 major export items, recorded the highest performance for May in history.
Imports in May recorded $50.33 billion, a decrease of 5.3%. Energy imports fell, with crude oil down 14.0% and gas down 0.3%, totaling $10.2 billion, a decrease of 12.8% compared to the same month last year. Imports excluding energy, including semiconductor equipment (+11.4%), decreased by 3.2% to $40.2 billion.
The trade balance for May recorded a surplus of $6.94 billion, an increase of $2.05 billion compared to the same month last year. The cumulative trade balance for January to May was a surplus of $19 billion, which is an increase of $4.2 billion year-on-year.
Minister Ahn Duk-geun noted, "Exports to both major markets, the United States and China, have decreased. It seems that tariff measures from the U.S. are affecting the global economy and our exports," and added, "The government will seek mutually beneficial solutions regarding tariff measures to minimize damage to our exporting corporations and maximize national interests."
He added, "We will swiftly execute the budget for the 'tariff response small and medium-sized enterprises trade insurance (150 billion won)' and 'tariff response vouchers (84.7 billion won)' prepared through the supplementary budget."