Korea's export boom masks widening gap between large, small firms

Korea's exports experienced a staggering surge of over 70 percent in the third quarter, compared to the same period last year, according to official data. However, the growth was not evenly distributed across the business landscape, with a significant portion concentrated among a select few large corporations, widening the disparity between major exporters and smaller businesses.

Government figures released on Tuesday revealed that while shipments skyrocketed, the number of firms engaged in exporting remained virtually unchanged, indicating that the advantages of the export boom have yet to trickle down to the majority of businesses.

According to preliminary trade statistics from the Ministry of Data and Statistics and the Korea Customs Service, exports surged 72.3 percent year-on-year, amounting to a total of $318.6 billion. Imports, on the other hand, rose by 25 percent to reach $203.1 billion. The export growth experienced a substantial acceleration, rising from 38.4 percent in the first quarter of this year to 57.2 percent in the second quarter.

A ministry official attributed this surge to the performance of the semiconductor sector, stating that export value and growth had reached record highs.

Despite the impressive export numbers, the data highlighted a stark contrast in export performance based on company size. Large corporations saw their exports more than double, reaching $248.6 billion, a remarkable 103.5 percent increase from the previous year. This contrast underscores a widening gap between major exporters and smaller firms, raising questions about the broader implications of the export boom for the Korean business sector as a whole.