The Recent Upturn in Korea’s Exports : Background and Implications

As of May 2021, Korea’s exports recorded a 23.4 percent year over year increase.This upturn is considered to be the result of the recovery and rebound from the COVID-19-induced recession. Factors that have contributed to this upturn include the activity in the so-called “untact” (contact-free) economy, the reflexive benefits of heightened environmental concern, and the potential for realizing growth utilizing new economic growth engines.Healthy performance in the areas of biohealth, rechargeable batteries, and other new export growth engines are contributing greatly to the positive trend in exports. Though exports are expected to remain steady this year, the second half of 2021 is expected to show a relative slowdown due to the base effect of the previous year and reduced demand for products that benefited from the untact economy.This analytical brief describes necessary policy steps to take in preparation for the post-COVID global trade environment