Auto exports prop up South Korean economy, minimizing losses in sluggish semiconductors: Korea International Trade Association

According to the report "Analysis of the Contribution Effect of Exports to the National Economy in 2023" published by the Korea International Trade Association, in 2023, South Korea's exports will induce production, added value, and employment effects, and will contribute to the national economy.
Exports played a central role in the country's growth. The contribution of exports to economic growth in 2023 was 1.17 percentage points, accounting for 86.1% of the country's economic growth rate (1.36%) in that year.
The share of exports in GDP also reached 35.7%, the highest since 2020. The value of production induced by exports is expected to grow at an average annual rate of 7.4% since 2020, reaching 1.2 trillion yen in 2023.
By product category, automobiles were the largest at $231.3 billion (approximately 36.37 trillion yen), followed by 14
This was followed by semiconductors at $3.4 billion (approximately 22.5514 trillion yen) and basic chemicals at $77.4 billion (approximately 12.1721 trillion yen). In 2022, semiconductors were the top item inducing added value.
However, automobiles will top the list at $659 (approximately 10.3635 trillion yen) in 2023. The association said, "The reason why the contribution of exports to economic growth, which decreased in value, was high is due to the steady increase in export volume.
"This is due to an increase in exports of items with large economic ripple effects, including automobiles and general-purpose machinery. Exports of items with large added value and employment-inducing effects were strong, minimizing losses due to the slump in semiconductors."