| Actual | Previous | |
|---|---|---|
| Balance | $4.88B | $4.99B |
| Imports - Y/Y | -2.7% | 2.3% |
| Exports - Y/Y | 3.7% | 3.1% |
Highlights
South Korea's trade balance trade surplus narrowed slightly from $4.99 billion in March to $4.88 billion in April. Exports rose 3.7 percent on the year after increasing 3.1 percent previously, while imports fell 2.7 percent on the year after a previous increase of 2.3 percent. These data cover the first few weeks after the escalation of global trade tensions in early April and officials noted that they were impacted by differences in the number of working days in April 2025 compared with April 2024. Adjusting for this impact, officials noted that exports fell 0.7 percent on the year in April, suggesting some impact from trade tensions. The data also showed exports to the United States fell by 6.8 percent on the year, offset by a 3.9 percent increase in exports to China.
Definition
The international trade balance measures the difference between imports and exports of both tangible goods and services. Imports may act as a drag on domestic growth and they may also increase competitive pressures on domestic producers. Exports boost domestic production. Trade balance values are calculated by deducting imports (cif) from exports (fob). The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets.
Imports indicate demand for foreign goods and services in the local economy. Exports show the demand for local goods in countries overseas. Movements in the trade balance directly affect GDP growth because of South Korea’s high reliance on trade. Stronger exports are bullish for corporate earnings and the stock market. The bond market is also sensitive to the risk of importing inflation.
This report also gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
Imports indicate demand for foreign goods and services in the local economy. Exports show the demand for local goods in countries overseas. Movements in the trade balance directly affect GDP growth because of South Korea’s high reliance on trade. Stronger exports are bullish for corporate earnings and the stock market. The bond market is also sensitive to the risk of importing inflation.
This report also gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
