Korea

The United States and the Republic of Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007. The United States has not yet approved the TPA.

U.S.-Korea Trade Facts

U.S. goods and services trade with Korea totaled $87 billion in 2009 (latest data available for goods and services trade combined). Exports totaled $41 billion; Imports totaled $46 billion. The U.S. goods and services trade deficit with Korea was $4 billion in 2009.

Korea is currently our 7th largest goods trading partner with $88 billion in total (two ways) goods trade during 2010. Goods exports totaled $39 billion; Goods imports totaled $49 billion. The U.S. goods trade deficit with Korea was $10 billion in 2010.

Trade in services with Korea (exports and imports) totaled $19 billion in 2009 (latest data available for services trade). Services exports were $12.6 billion; Services imports were $6.4 billion. The U.S. services trade surplus with Korea was $6.2 billion in 2009.

Exports

Korea was the United States' 7th largest goods export market in 2010.

U.S. goods exports to Korea in 2010 were $38.8 billion, up 35.8% ($10.2 billion) from 2009, and up 116% from 1994 (the year prior to Uruguay Round). U.S. exports to Korea account for 3.0% of overall U.S. exports in 2010.

The top export categories (2-digit HS) in 2010 were: Machinery ($6.9 billion), Electrical Machinery ($5.1 billion), Optic and Medical Instruments ($2.7 billion), Aircraft ($2.4 billion), and Organic Chemicals ($2.2 billion).

U.S. exports of agricultural products to Korea totaled $5.3 billion in 2010, the 5th largest U.S. Ag export market. Leading categories include: coarse grains ($1.4 billion), red meats (fresh/chilled/frozen) ($701 million), hides and skins ($422 million), feeds and fodders ($367 million), and wheat ($345 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Korea were $12.6 billion in 2009 (latest data available) 2.0% ($256 million) less than 2008 and 174% greater than 1994 levels. Other private services (education and business, professional and technical services), and the royalties and license fees categories accounted for most of U.S. exports in 2009.

Imports

Korea was the United States' 7th largest supplier of goods imports in 2010.

U.S. goods imports from Korea totaled $48.9 billion in 2010, a 24.6 % increase ($9.6 billion) from 2009, and up 149% over the last 16 years. U.S. imports from Korea account for 2.6% of overall U.S. imports in 2010.

The five largest import categories in 2010 were: Electrical Machinery ($15.3 billion), Machinery ($9.3 billion), Vehicles (cars) ($9.3 billion), Mineral Fuel and Oil ($2.4 billion), and Rubber ($1.6 billion).

U.S. imports of agricultural products from Korea totaled $298 million in 2010. Leading categories include snack foods (including chocolate) ($28 million) and processed fruit and vegetables ($26 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $6.4 billion in 209 (latest data available), down 11.2% ($812 million) from 2008, but up 130% from 1994 level. Other transportation, passenger fares, and travel categories accounted for most of U.S. services imports from Korea.

Trade Balance

The U.S. goods trade deficit with Korea was $10.0 billion in 2010, a 5.5% decrease ($588 million) over 2009.

The United States has a services trade surplus of $6.2 billion with Korea in 2009 (latest data available), up 9.9% from 2008.

Investment

U.S. foreign direct investment (FDI) in Korea (stock) was $27.0 billion in 2009 (latest data available), a 20.5% increase from 2008.

U.S. direct investment in Korea is led by the manufacturing, finance/insurance, and wholesale trade sectors.

Korea FDI in the United States (stock) was $12.0 billion in 2009 (latest data available), down 0.9% from 2008.

Korea is direct investment in the U.S. is primarily in the wholesale trade sector.

Sales of services in Korea by majority U.S.-owned affiliates were $11.0 billion in 2008 (latest data available), while sales of services in the United States by majority Korean-owned firms were $5.7 billion.

---

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.