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 $101 billion in 2007 (latest data available). Exports totaled $47 billion; Imports totaled $54 billion. The U.S. goods and services trade deficit with Korea was $7 billion in 2007.

Korea is currently our 7th largest goods trading partner with $83 billion in total (two ways) goods trade during 2008. Goods exports totaled $35 billion; Goods imports totaled $48 billion. The U.S. goods trade deficit with Korea was $13 billion in 2008.

Trade in services with Korea (exports and imports) totaled $19.3 billion in 2007 (latest data available). Services exports were $12.7 billion; Services imports were $6.6 billion. The U.S. services trade surplus with Korea was $6.2 billion in 2007.

Exports

Korea was the United States' 8th largest goods export market in 2008.

U.S. goods exports to Korea in 2008 were $34.7 billion, up 0.1% ($24 million) from 2007, and up 92% from 1994 (the year prior to Uruguay Round). U.S. exports to Korea account for 2.7% of overall U.S. exports in 2008, down from 3.5% in 1994.

The top export categories (2-digit HS) in 2008 were: Electrical Machinery ($5.3 billion), Machinery ($5.1 billion), Cereals ($2.8 billion), Aircraft ($2.5 billion), and Optic and Medical Instruments ($2.3 billion).

U.S. exports of agricultural products to Korea totaled $5.6 billion in 2008, the 5th largest U.S. Ag export market. Leading categories include: coarse grains ($2.2 billion), red meats (fresh/chilled/frozen) ($564 million), wheat ($526 million), hides and skins ($310 million), and feeds and fodders (excluding pet foods) ($291 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Korea were $12.7 billion in 2007 (latest data available), 4.0% ($487 million) greater than 2006 and 176% ($8.1 billion) greater than 1994 levels. Other private services (business, professional and technical services, and education), and the other transportation categories accounted for most of U.S. exports in 2007.

Imports

Korea was the United States' 9th largest supplier of goods imports in 2008.

U.S. goods imports from Korea totaled $48.1 billion in 2008, a 1.1% increase ($507 million) from 2007, and up 145% over the last 14 years. U.S. imports from Korea account for 2.3% of overall U.S. imports in 2008, down from 3.0% in 1994.

The five largest import categories in 2008 were: Electrical Machinery ($15.4 billion), Vehicles (cars) ($9.6 billion), Machinery ($7.4 billion), Mineral Fuel and Oil ($2.2 billion), and Iron and Steel Products ($1.9 billion).

U.S. imports of agricultural products from Korea totaled $249 million in 2008. Leading categories include fresh fruit ($23 million), and snack foods (including chocolate) ($21 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $6.6 billion in 2007 (latest data available), up 1.9% ($122 million) from 2006, and up 134% ($3.7 billion) 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 $13.4 billion in 2008, a 3.7% increase ($483 million) over 2007. The U.S. goods trade deficit with Korea accounted for 1.6% of the overall U.S. goods trade deficit in 2008.

The United States has a services trade surplus of $6.2 billion with Korea in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in Korea (stock) was $27.2 billion in 2007 (latest data available), a 10.3% increase from 2006.

U.S. direct investment in Korea is mostly in the manufacturing, banking, and finance/insurance sectors.

Korea FDI in the United States (stock) was $13.1 billion in 2007 (latest data available), up 43.5% from 2006.

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

Sales of services in Korea by majority U.S.-owned affiliates were $7.3 billion in 2006 (latest data available), while sales of services in the United States by majority Korean-owned firms were $3.2 billion.

 

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