Accounting for around 16% of global trade in goods, the EU is the largest trader of manufactured goods and services1). The EU has FTAs with 77 countries and is the top trading partner for 80 countries, and the one where trade accounts for the largest share of its economy among the large economies. The EU ranks first in both inbound and outbound international investments. In recent years, the EU has further developed its leading position in international trade, with its ability to put in place new free trade agreements with emerging and developed countries.
The EU economy was estimated to expand by 0.9% in 2024 year on year2), after having posted its annual growth of 0.5% in 2023. The expansion continued at a subdued, yet steady pace throughout the second and third quarters, amidst further abating inflationary pressures. Growth in the EU is expected to pick up to 1.5% in 2025, as consumption is shifting up a gear and investment is set to rebound from the contraction of 2024. In 2026, economic activity is projected to expand by 1.8% on the back of continued expansion of demand3).
The RoK is one of the most dynamic economies in the world. With a nominal GDP of USD 1.95 trillion (2024)4), the country has the 12th largest economy in the world and the 4th largest economy in Asia. The RoK’s total trade represented 88% of the country’s GDP, and its exports of goods and services accounted for 44% of the GDP (2023)5). As of January 2025, the RoK has 21 FTAs in effect with 59 countries, covering 85% of global GDP6). During the past years, the RoK concluded or signed FTAs with 5 other partners (i.e. GCC, UAE, Philippines, Guatemala and Ecuador), while engaging in new or improved FTA negotiations with 12 trading partners.
In 2024, the RoK economy expanded by 2.0% year on year on the back of stronger-than-expected semiconductor exports, after expanding 1.4% in 2023 and 2.6% in 2022. The upcycle for memory chips in 2024 was more pronounced than in previous cycles, driven by strong demand for artificial intelligence (AI) and some demand recovery in other consumer electronics. The export-driven economy, however, is projected to slow down in 2025 to 1.5%, below the estimated potential of around 2%).
The RoK’s total trade in goods in 2024 reached USD8) 1,316 billion, up 3.2% from the previous year: exports amounted to an all-time high of USD 683.8 billion (+8.1% year on year), surpassing the previous high of USD 683.6 billion set in 2022; and imports reached USD 632.1 billion (-1.6%) amid reduced energy imports. The RoK registered a trade surplus of USD 51.8 billion, after recording a two year long trade deficit in 2022-2023.
In terms of products, exports maintained strong momentum in ICT items although the pace of growth is moderating. The RoK’s chip exports soared 43.9% to USD 141.9 billion, maintaining its upward trajectory for the 14th consecutive month since November 2023 and renewing the record high (USD 129.2 billion, 2022) in just two years. High value-added items (e.g. DDR5s and HBMs) led the overall growth. Equally noteworthy was that exports of cars decreased slightly 0.1% but were retained at USD 70.8 billion; and that ship exports logged double-digit growth by 18% to USD 25.6 billion with the delivery of LNG carriers and container ships ordered in 2021.
By trading partner, China was the RoK’s largest export destination in 2024, representing 19.5% of
total exports - which decreased from the previous years’ share of 19.7% in 2023 and 22.2% in 2022 - ahead of the US (18.7% from 18.3% in 2023), the EU (10% from 10.8% in 2023), Vietnam (8.5%), Hong Kong (5.1%), Taiwan (5.0%) and Japan (4.3%). Major sources of imports to Korea were China (22.1%), the US (11.4%), the EU (10.2%), and Japan (7.6%).
The RoK’s total trade in services10) totalled USD 301.6 billion in 2024, up 8.4% from the previous year. Exports registered USD 139 billion, up 10.6% year on year, and imports recorded USD 162.7 billion, up 6.7% year on year, which led to Korea’s deficit of USD 23.7 billion. The RoK’s services trade posted annual growth of 3.5% from 2014 to 2024 EU-RoK bilateral trade in goods11) reached EUR 123.7 billion in 2024, down 5.4% year on year. EU imports from the RoK amounted to EUR 67.9 billion (-7.5% year-on-year), and EU exports to the RoK posted EUR 55.7 billion (-2.7% year-on-year), which led to EU’s trade deficit of EUR 12 billion. In 2024, the EU continued to be the RoK's 3rd largest trade partner in goods, behind China and the US, but
ahead of Vietnam, Japan and Australia.
EU-RoK bilateral trade in services continued to record over EUR 30 billion (latest data available)12), but slightly decreased 1% on an annual basis. The EU has recorded a long-standing surplus in trade in services, vis-à-vis the RoK, amounting to EUR 6.6 billion in 2023. The EU remained the largest foreign investor in terms of stock in 2023 (latest data available)13), which represented 25.8% of the RoK’s total FDI stock, ahead of Japan (20.1%), the US (15.5%), Southeast Asia (15.8%), and China (5.2%). The EU-RoK FTA has served to create an expanded and secure market for goods and services as well as a stable and predictable environment for investment, thereby contributing greatly to strengthening and deepening the bilateral trade and investment relationship.
