The exports from free trade zones last year reached a record high of $14.9 billion, which is a 22.5% increase compared to the previous year, driven by strong performance in automobile and semiconductor exports.
On the 4th, the Ministry of Trade, Industry and Energy announced that exports from free trade zones in 2024 increased by 22.5% compared to the previous year, surpassing $10 billion for the fourth consecutive year. Last year’s exports in free trade zones marked the highest level since the designation of the Masan Free Trade Zone in 1970.
By type, airport-type zones accounted for $12.7 billion, representing 85.2% of the total exports, while industrial complex types accounted for $2.11 billion, and port types for $870 million. There are a total of 13 designated and operational free trade zones, consisting of 7 industrial complex types including Masan and Gunsan, 1 airport type (Incheon Airport), and 5 port types including Gwangyang Port and Busan Port.
The industrial complex type surpassed $2 billion in exports for the second consecutive year, boosted by increased exports of parts by related companies following the global trend of high-value and eco-friendly products, particularly in K-automobiles and ship exports. The airport type’s exports increased by 29.3% year-on-year due to a surge in demand for high-performance semiconductors and high-bandwidth memory (HBM) semiconductors.
By product category, semiconductors held the largest share at 85.2%, followed by electronics and precision instruments (car parts, mobile phone parts) at 6.4%, and petrochemicals at 1.9%. By country, exports were distributed to China (64.3%), Vietnam (8.8%), the US (3.2%), and India (2.2%), among others.
An official from the Ministry of Trade, Industry and Energy stated, “We anticipate that exports from free trade zones will continue to increase this year as well, aided by rising demand for AI semiconductors and sustained growth in eco-friendly car exports. We will work collaboratively with relevant ministries and local governments to provide comprehensive support, ensuring that free trade zones can consistently deliver results as a forward base for exports.”