South Korean exports to China fell to $124.8 billion, down 20% from $155.7 billion in 2022, while imports from the neighboring country came to $142.8 billion, dipping 8% from $154.5 billion.
The larger drop in exports sent South Korea's trade with the world's second-largest economy into the red from a surplus of $1.2 billion the year before.
In contrast, South Korea's annual exports to the U.S. increased 5% in 2023. Monthly shipments to the world's largest economy in the month of December, meanwhile, exceeded those to China for the first time in 20 years on the back of solid sales of cars, auto parts, and automotive batteries.
Growing exports to the U.S. are also in sync with the diplomacy of President Yoon Suk Yeol that favors close ties with Washington. Responding to that political stance, major conglomerates such as Samsung, Hyundai Motor, LG, SK, and Lotte have been increasing their investments in the U.S.
South Korea's total exports in 2023 stood at $632.7 billion, down 7% from the previous year as exports declined for the first time in three years. Imports also declined, falling 12% to $642.7 billion.
South Korea recorded a trade deficit of $10 billion, its second in a row, though it marked a narrowing from $47.8 billion in 2022.