Data released today indicate that South Korea’s car exports soared by 31% year-on-year last year, fueled by a global demand surge for high-quality, eco-friendly vehicles.
The South Korean Ministry of Trade, Industry, and Energy reported that car export values during the past year reached $70.9 billion, up from $54.1 billion the previous year, while eco-friendly vehicle exports increased by 50% annually to $24.2 billion.
The Yonhap News Agency of South Korea also noted a rise in the average price of South Korean cars in foreign markets by 9.5% last year, with the average price of each shipped vehicle reaching $23,000—the highest level ever recorded.
The ministry stated in a report, “Despite concerns over the American Inflation Reduction Act, the government continued communication with Washington to make locally produced eco-friendly cars eligible for American tax incentives of up to $7,500 per vehicle when used for business purposes such as leasing.”
Meanwhile, the total number of vehicles exported by South Korea last year was 2.76 million, an increase of 20.3% annually.
North America claimed the largest share of last year’s South Korean car exports, accounting for over 50% of the total exports after a 44.7% increase to this market valued at $36.9 billion. This was followed by the European Union, which took in exports worth $10.8 billion, marking a 32.9% increase year-on-year.
Exports to Asian countries grew to $5.68 billion, up by 28.7%, while the Middle East saw exports valued at $5.48 billion, up by 13% during this period.
Additionally, in 2023, domestic car sales in South Korea rose by 3.3% to 1.73 million vehicles, with local production also increasing by 13% annually to 4.24 million vehicles.
