Korea

New Opportunities for U.S. Exporters Under the U.S.-Korea Trade Agreement

The entry into force of the U.S.-Korea Free Trade Agreement on March 15, 2012 means countless new opportunities for U.S. exporters to sell more Made-in-America goods, services, and agricultural products to Korean customers – and to support more good jobs here at home. If you’re an American exporter, here are resources to answer your questions about how the U.S.-Korea trade agreement can work for you:

• Check out the FTA Tariff Tool to find out the new tariff levels for your products, and other information about your market access under the agreement.

• For further assistance, please email KORUS@ustr.eop.gov or call USTR's Office of Korean Affairs at 202-395-5070, where Bryant Trick or Su-Jin Yoo can help to answer additional questions

The United States and the Republic of Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007.

U.S.-Korea Trade Facts

U.S. goods and services trade with Korea totaled $125 billion in 2011. Exports totaled $60 billion; Imports totaled $65 billion. The U.S. goods and services trade deficit with Korea was $6 billion in 2011.

Korea is currently our 7th largest goods trading partner with $100 billion in total (two ways) goods trade during 2011. Goods exports totaled $44 billion; Goods imports totaled $57 billion. The U.S. goods trade deficit with Korea was $13 billion in 2011.

Trade in services with Korea (exports and imports) totaled $25 billion in 2011 (preliminary data). Services exports were $17 billion; Services imports were $8 billion. The U.S. services trade surplus with Korea was $8 billion in 2011.

Exports

Korea was the United States= 7th largest goods export market in 2011.

U.S. goods exports to Korea in 2011 were $43.5 billion, up 12.0% ($4.7 billion) from 2010, and up 56% from 2000. U.S. exports to Korea account for 2.9% of overall U.S. exports in 2011.

The top export categories (2-digit HS) in 2011 were: Machinery ($6.1 billion), Electrical Machinery ($6.1 billion), Optic and Medical Instruments ($2.9 billion), Aircraft ($2.6 billion), and Mineral Fuel (oil) ($2.6 billion).

U.S. exports of agricultural products to Korea totaled $7.0 billion in 2011, the 5th largest U.S. Ag export market. Leading categories include: coarse grains ($1.8 billion), red meats (fresh/chilled/frozen) ($1.2 billion), hides and skins ($470 million), wheat ($466 million), and cotton ($394 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Korea were $16.8 billion in 2011 (preliminary data), 11% ($1.7 billion) more than 2010 and 143% greater than 2000 levels. Other private services (education and business, professional and technical services and education services), royalties and license fees, and the travel categories accounted for most of U.S. services exports to Korea.

Imports

Korea was the United States= 6th largest supplier of goods imports in 2011.

U.S. goods imports from Korea totaled $56.6 billion in 2011, a 15.9% increase ($7.8 billion) from 2010, and up 41% from 2000. U.S. imports from Korea account for 2.6% of overall U.S. imports in 2011.

The five largest import categories in 2011 were: Electrical Machinery ($16.1 billion), Vehicles (cars) ($12.0 billion), Machinery ($10.3 billion), Mineral Fuel and Oil ($2.6 billion), and Iron and Steel Products ($2.1 billion).

U.S. imports of agricultural products from Korea totaled $333 million in 2011. Leading categories include and processed fruit and vegetables ($37 million) and snack foods (including chocolate) ($32 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $8.4 billion in 2011 (preliminary data), up 8% ($633 million) from 2010, and up 83% from 2000 level. Other transportation (freight services), 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 $13.1 billion in 2010, a 30.9% increase ($3.1 billion) over 2010.

The United States has a services trade surplus of $8.4 billion with Korea in 2011 (preliminary data), up 14.5% from 2010.

Historical Trade Data

U.S. Goods Trade with Korea (in billions of dollars)

 U.S. Services Trade with Korea (in billions of dollars) 1994, 2000, 2005-2011

Investment

U.S. foreign direct investment (FDI) in Korea (stock) was $30.2 billion in 2010 (latest data available), a 12.5% increase from 2009.

U.S. direct investment in Korea is led by the manufacturing, and banking sectors.

Korea FDI in the United States (stock) was $15.2 billion in 2010 (latest data available), up 12.7% from 2009.

Korea’s direct investment in the U.S. is primarily in the wholesale trade sector.

Sales of services in Korea by majority U.S.-owned affiliates were $10.2 billion in 2009 (latest data available), while sales of services in the United States by majority Korean-owned firms were $6.8 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.