Phl exports to South Korea expected to recover in H2

Philippine exports to South Korea are expected to rebound in the second half of the year amid better economic and business conditions in Seoul, which have hindered the country from seeing increased trade under the free trade agreement (FTA).

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Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said that economic and political uncertainties in South Korea since December 2024 may have slowed down the country’s economic and business activities, including imports from the Philippines.

“The weaker South Korean currency (won) since late 2024 could have also made Philippine exports more expensive from South Korea’s point of view,” he said in a Viber message.

“This could also be a function of competition from other Association of Southeast Asian Nations (ASEAN) or Asian exporters such as Vietnam on exports such as bananas, among others,” he added.

Philippine Statistics Authority data showed Philippine exports to South Korea declined by 25.5% to $1 billion in the January-to-April period from $1.348 billion a year earlier. This despite the Philip-pine-South Korea FTA in effect for four months.

In April alone, the country exported $264.84 million worth of goods to South Korea, down 16.8% from $318.27 million in the previous year.