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South Korea's Auto Exports Surge to Record USD72B

(MENAFN) South Korea's vehicle exports surged to an unprecedented $71.99 billion in 2025, marking a historic 1.7 percent annual increase as global appetite for environmentally-friendly automobiles fueled the milestone achievement, the Ministry of Trade, Industry and Resources reported Thursday.

The nation's automotive sector breached the $70 billion export threshold for three consecutive years, driven predominantly by explosive growth in eco-conscious vehicle sales. Green vehicle shipments skyrocketed 11.0 percent year-over-year, reaching $25.77 billion and accounting for more than one-third of total automotive exports.

However, the achievement came amid significant headwinds in South Korea's largest export market. U.S.-bound automotive shipments plummeted 13.2 percent to $30.15 billion as American tariff policies dampened demand across the Pacific.

South Korean automakers compensated by aggressively expanding into alternative markets. Exports to the European Union and Asian nations both posted double-digit percentage gains, climbing to $8.06 billion and $5.88 billion respectively throughout 2025.

Despite record-breaking revenue figures, actual vehicle export volume contracted 1.7 percent to 2,736,308 units, while auto parts shipments experienced a steeper 5.9 percent decline to $21.20 billion.

Domestic manufacturing output at South Korean facilities decreased marginally by 0.6 percent to 4,101,992 vehicles in 2025, though production sustained the four-million-unit benchmark for the third successive year.

Meanwhile, the domestic automotive market demonstrated resilience, with total vehicle sales—encompassing both domestically-produced and imported automobiles—reaching 1,680,110 units in 2025, representing a 3.3 percent uptick from 2024 levels.

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