South Korea’s export volume gap with Japan has narrowed to its smallest ever, indicating a potential historic change in the global economic hierarchy. Data from CEIC shows that South Korea’s exports reached $334.8 billion in the first half of 2024, a 9.0% increase from last year. Conversely, Japan’s exports fell 3.6% to $338.3 billion, leaving a mere $3.5 billion gap between the two nations.
This trend has been developing for over a decade. The export volume gap peaked at $359.9 billion in 2008 and has been shrinking steadily, reaching $63.2 billion in 2022. Japan’s exports, especially in automobiles and shipbuilding, have been declining due to heightened competition from South Korea and China. Meanwhile, South Korea has experienced robust growth in key sectors such as semiconductors and automobiles.
South Korea’s export growth rate of 9.9% up to May 2024 is the highest among the world’s top 10 exporting countries. Last year, South Korea was the 8th largest exporter globally, with $632.6 billion in exports, closely trailing France, Italy, and Japan. The current narrow gap raises the possibility that South Korea might surpass Japan in annual export volume for the first time, potentially moving up to the 5th spot worldwide.
If this trend continues, it could mark a significant shift in global trade dynamics and economic power within East Asia, highlighting the evolving competitive landscape between these two major economies.
