BlitzINDIA and IANS
Seoul, June 15 — South Korea is seeing a notable shift in its export dynamics, with the Association of Southeast Asian Nations (ASEAN) emerging as a crucial trade partner. Amid growing global trade tensions and the impact of U.S. tariff policies, exports to ASEAN are climbing, helping to offset declines in shipments to major markets like the United States and China.
According to data released by the Korea International Trade Association (KITA), South Korea’s exports to ASEAN countries reached $47.88 billion from January to May, marking a 4.3% increase compared to the same period last year.
In contrast, exports to the United States and China have taken a hit. Shipments to the U.S. dropped by 4.3%, while exports to China fell by 5%, reflecting the broader repercussions of Washington’s protectionist trade stance under former President Donald Trump.
The growing significance of ASEAN was underscored earlier this year. In February, South Korea’s exports to the region hit $9.56 billion, narrowly surpassing the $9.5 billion shipped to China—a first in more than two decades. March followed suit, with ASEAN-bound shipments reaching $10.26 billion, again edging out China’s $10.06 billion.
While May saw a slight dip in exports to ASEAN—down 1.3% to $10 billion—this was less severe than the 8.4% decline in shipments to the U.S. and the 8.1% drop to China. Analysts say the shift points to a broader rebalancing of trade routes amid a changing geopolitical and economic environment.
The Korea Trade-Investment Promotion Agency (KOTRA) has identified ASEAN as a high-potential export destination, citing key drivers such as a growing middle class, rapid digitalization, and a global push to diversify supply chains away from China.
Products such as semiconductors, consumer electronics, renewable energy equipment, electric vehicle battery components, robotics, and home appliances are among South Korea’s most promising export categories to ASEAN nations.
“With the decoupling trend between the U.S. and China, both powers are deepening ties with ASEAN. The region is set to become even more strategic, not just for South Korea but for the global supply chain,” said Austin Chang, president of the Institute for International Trade at KITA.
As global trade continues to evolve, South Korea’s pivot toward ASEAN may serve as a model for other export-driven economies looking to navigate a fragmented and volatile global market.