S. Korea targets record-high exports for 2021 following successful pandemic response

South Korea is close to setting a new record for annual exports in 2021 and beating the previous record of $605 billion posted in 2018 on the back of its successful response to the pandemic.

The country's exports jumped 45.6 percent on year in May to extend their gains to a seventh consecutive month due to strong demand for chips amid the global economic recovery. It marked the sharpest jump since 52.6 percent posted in August 1988.

When the country's outbound shipments dropped by 5.4 percent from 2019 to $512.8 billion in 2020 due to the economic fallout from the pandemic, Industry Minister Moon Sung-wook noted that South Korea did not implement any lockdowns and allowed factories to operate.

Consequently, the successful control of the COVID-19 pandemic paved the way for South Korea to report record-setting export figures for 2021.

However, Moon warned that soaring freight costs and global supply chain disruptions may hamper exports down the road.

Moon noted that South Korea will continue to try signing more free trade agreements to diversify its trade portfolio.

South Korea is awaiting the launch of the Regional Comprehensive Economic Partnership (RCEP), which covers ASEAN and its dialogue partners.

It plans to implement the Comprehensive Economic Partnership Agreement, an equivalent of a free trade agreement, with Indonesia as well.

The minister added South Korea will also continue to review joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in efforts to expand mega FTAs in Asia-Pacific.