Korean car exports hit a record high in 2023

[Photo by Lee Chung-woo]

South Korea’s automobile exports hit a record high of over $70 billion in 2023, despite domestic and international challenges including the U.S. Inflation Reduction Act (IRA). Automobiles ranked first among all export items amid a slump in semiconductors, leading to an improved export and trade balance in the country.

According to data from the Ministry of Trade, Industry and Energy on Tuesday, the country’s automobile exports totaled $70.9 billion in 2023, up 31.1 percent from a year ago. The number of eco-friendly vehicles exported during the year was up 31.3 percent from the previous year to 729,000, and the export value was up 50.3 percent to $24.2 billion, both record highs.

The growth in outbound shipments of electric vehicles was particularly notable, and electric vehicles accounted for the largest share of all eco-friendly vehicle exports with 349,000 units exported, up 58.1 percent year-on-year.

Exports of hybrid vehicles saw a 9.3 percent increase to 315,000 units, and plug-in hybrid vehicles increased by 40.9 percent with 65,000 units.

By region, exports to North America rose by 44.7 percent to $37 billion compared to the previous year, and those to the European Union (EU) recorded a 32.9 percent increase to $10.8 billion.

The export unit price per vehicle hit a record high of $23,000 thanks to the strong performance of high-value eco-friendly vehicles.