It has been 10 years as of 2021 since the Korea-US FTA first took effect in 2012. Data regarding the 10 years of the Korea-US FTA shows that the bilateral pact has mutually benefited both sides in terms of trade and investment growth.
Trade in goods
Korea’s goods trade in 2021 jumped 28.5 percent from a year ago to US $169.1 billion. Goods trade is up 66.1 percent from 2012, when the Korea-US FTA took effect. Korean exports of automobiles, auto parts, semiconductors, computers and petroleum products grew, and US exports of crude oil, semiconductor manufacturing equipment, natural gas, liquefied petroleum gas (LPG) and automobiles increased. US market share for Korean products rose 0.1 percentage points to 3.4 percent, and Korean market share for US products fell 0.4 percentage points to 11.9 percent. Korea ran a surplus of US $22.7 billion in 2021.
Trade in services
Services trade in 2020 fell 12.4 percent from a year ago to US $43.1 billion due to COVID-19¹. Services trade recorded an average annual growth rate of 2.6 percent during the 2012-2020 period. Korean exports of services fell 3.3 percent to US $17.4 billion. US exports of services fell 17.9 percent to US $25.7 billion. The US ran a surplus of US $8.3 billion in 2020.
Foreign Direct Investment
A total of US $112.99 billion worth of Korean FDI has been made in the US for 2012-2021 (as of the end of the third quarter of 2021), up 282.0 percent compared with the previous 10-year period (2002-2011). US FDI commitments to Korea were US $5.26 billion in 2021, and total investments pledged amounted to US $48.2 billion for 2012-2021, up 98.0 percent compared with the previous 10 years.
¹ Bank of Korea will post the 2021 services trade statistics in June 2022.