EU - South Korea Summit EU27 deficit of 4 bn euro in trade in goods with South Korea in 2011

STAT/12/49

27 March 2012

EU - South Korea Summit
EU27 deficit of 4 bn euro in trade in goods with South Korea in 2011

EU27 trade in goods with South Korea has grown over the last decade, but more rapidly for exports than for imports. While EU27 exports to South Korea almost doubled between 2000 and 2011, from 17 bn euro in 2000 to 32 bn in 2011, EU27 imports from South Korea grew only by a third, from 27 bn in 2000 to 36 bn in 2011, and remained below the peak of 2007. Since 2000, the EU27 has always recorded a trade deficit with South Korea. However this deficit has progressively fallen from 18 bn in 2006 to 4 bn in 2011.

After a strong decline in 2009, EU27 trade with South Korea recovered in 2010. However in 2011, while EU27 exports continued to increase from 28 bn in 2010 to 32 bn in 2011, imports fell from 39 bn to 36 bn. South Korea accounted for just over 2% of the EU27's total trade in goods in 2011, and was the EU27's 10th most important trading partner.

On the occasion of the European Union - South Korea Summit, which will take place on 28 March in Seoul in South Korea, Eurostat, the statistical office of the European Union, issues data1 on trade and investments between South Korea and the EU.

Germany, more than a third of EU27 exports to South Korea and almost a quarter of EU27 imports

Among the EU27 Member States, Germany (11.6 bn euro or 36% of EU exports) was by far the largest exporter to South Korea in 2011, followed by France (4.2 bn or 13%), the Netherlands2 (3.7 bn or 11%), Italy (2.9 bn or 9%) and the United Kingdom (2.8 bn or 9%). Germany (8.2 bn or 23% of EU imports) was also the largest importer, followed by Italy (3.3 bn or 9%) and Slovakia (3.0 bn or 8%). The largest deficits in trade with South Korea were observed in Slovakia (-2.9 bn euro), Poland (-2.1 bn) and the Czech Republic (-1.1 bn), while the largest surpluses were recorded in Germany (+3.4 bn) and France (+1.8 bn).

EU27 trade in goods with South Korea

billion euro

EU27 Member States' trade in goods with South Korea

million euro

EU27 trade in goods with South Korea by product

million euro

An EU27 surplus of 3 bn euro for trade in services with South Korea in 2010

In 2010, the EU27 exported 7.6 bn euro of services to South Korea, while imports from South Korea amounted to 4.5 bn, meaning that the EU27 had a surplus of 3.1 bn in trade in services with South Korea in 2010, compared with +2.4 bn in 2009 and +3.1 bn in 2008. The surplus in 2010 was mainly due to other business services4 and transport (both +0.9 bn) and royalties & license fees (+0.7 bn). South Korea accounted for just over 1% of total extra-EU27 trade in services.

EU27 trade in services with South Korea

million euro

Increase in FDI flows between EU27 and South Korea in 2010

EU27 Foreign Direct Investment (FDI) into South Korea rose from 0.9 bn euro in 2009 to 2.8 bn in 2010, and South Korean FDI into the EU27 increased from 1.6 bn in 2009 to 3.8 bn in 2010.

EU27 FDI flows with South Korea

(million euro)

• For further data on the EU and South Korea, please see the Eurostat / Statistics Korea publication "The European Union and the Republic of Korea - A statistical portrait":

http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-32-11-816

• Dutch imports and therefore the trade deficit are over-estimated because of the “Rotterdam effect” where goods destined for the rest of the EU arrive and are recorded in harmonised EU external trade statistics in Dutch ports. This then has a positive effect on the external trade balances with South Korea of those Member States to which the goods are re-exported as these shipments would be recorded as intra-EU trade with the Netherlands rather than extra-EU trade with South Korea. To a lesser extent, Belgian trade figures are similarly over-estimated.

• Machinery and vehicles includes power generating and industrial machinery, computers, electric and electronic parts and equipment, road vehicles and parts, ships, airplanes and railway equipment.

Other manufactured articles include leather, rubber, wood, paper, textiles, metals, building fixtures and fittings, furniture, clothes, shoes and accessories, scientific instruments, clocks, watches and cameras.

• Other business services comprise merchanting and other trade-related services, operational leasing services and miscellaneous business, professional and technical services.