President Moon Jae-in poses with winner of the Order of Industrial Service Merit, including Samsung Electronics President Kim Hyun-suk at a ceremony to mark the 57th Trade Day at COEX on Dec. 8. (Photos on the courtesy of Cheong Wa Dae website)

Korea is predicted to see exports surpass $500 billion this year for the fourth consecutive year. Despite a global economic crisis, caused by the COVID-19 pandemic, the nation posted strong export performances with major countries.

The nation, marking the 57th Trade Day anniversary, is evaluated to have managed to maintain its global standing as a trade powerhouse. In particular, new growth engine industries such as eco-friendly cars and bio-health have emerged as new driving forces in the post-COVID-19 pandemic era as their exports had made a strong showing.

The Institute of International Trade (IIT) of the Korea International Trade Association (KITA) forecast that Korea will see exports and imports decline 6.4 percent and 7.6 percent to $507.7 billion and $465 billion this year, respectively, compared to a year before.

A sagging global economy caused by the spread of COVID-19, and a drop in unit prices from declining international crude oil prices, were owed to drops in overall exports, particularly in items susceptible to crude oil price fluctuations such as petrochemicals with a minus 18.6 percent growth rate, petroleum products with a minus 40.2 percent growth rate and general machineries with a minus 10.2 percent growth rate.

But Korea saw lower decline rates than major countries, including Germany, Japan and the United States. Korea placed ahead of China.

Exports plunged 20.3 percent in the second quarter of the year compared to a year earlier due to the impact of the COVID-19 pandemic, but they entered a mode of recovery in a fast pace in the third quarter.

KITA Chairman Kim Young-joo said, as for this year’s export trends, exports nose-dived in the first quarter of the quarter, bottomed out in the second quarter, and began to recover in the third quarter. Then they came out of the slump in the fourth quarter.

In a discussion session with a vernacular economic daily, KITA Executive Vice Chairman Han Jin-hyun predicted that the global economy would post a minus mid-4 percent growth rate due to the ramifications of the COVID-19 pandemic, and global exports would decline about 9 percent.

Export mainstay items have served as buttresses to overcome a crisis, caused by the COVID-19 pandemic.

The Big Three new industries - system semiconductors, bio-health and EVs/hydrogen cars - as well as promising consumer products have emerged as new mainstay items. Semiconductors, Korea’s representative export item, maintained a stable 3.5 percent growth rate to lead the nation’s fast recovery.

Automobile exports, which also rose for the recent third consecutive month, were on a roll. Computer exports, which increased for the 14th consecutive month, surged 67.2 percent compared to the same period of last year due to a rise in demand for non-face-to-face contact.

OLED and secondary battery exports are forecast to chalk up the best-ever yearly performance as IT items have made a strong showing. Items such as steel, textile, machinery and petrochemical exports declined over the previous year, but their drop rates reduced to one-digit levels in December.

System semiconductors, one of the Big Three new industries, surged 15.4 percent while two others - bio-health and EV/hydrogen cars jumped a two-digit grow rate to achieve the best-ever performance.

A ceremony to celebrate the 57th Trade Day anniversary took place at Coex in Samseong-dong, Seoul, on Dec. 8. Among about 40 people on hand at the event were President Moon Jae-in, Minister of Trade, Industry and Energy Sung Yoon-mo, KITA Chairman Kim, and order and government prize winners.

In his commemorative speech, President Moon said the government will consider joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), led by the United States, as part of its bid to widen the country’s free trade partners.

The president had so far not made clear on the matter, considering trade ties with China. President Moon also stressed the nation’s trade paradigm shifting into an eco-friendly one, citing global unavoidable trends of carbon neutrality.

During the anniversary event, 599 individuals were honored with orders and other government prizes in recognition of their contribution to the recovery of the trade industry.

Another 1,505 companies were presented with export tower awards. The coveted Order of Industrial Service Merit, Gold Tower went to five people, including Samsung Electronics President Kim Hyun-suk.

Samsung SDI was awarded with the $3 billion export tower while LG Household & Health Care received the $1 billion export tower.

President Lee Byung-ho of Korea Agro-Fisheries & Food Trade Corp. (aT) was presented with the presidential award.

President Lee had been credited with his contribution to leading agro-fisheries & food trade growth by nimbly coping with the worsening of external export conditions such as Korean-Japanese trade conflicts and deepening protectionist trade moves.