U.S. - Korea Free Trade Agreement (2024)

KORUS FTA

Opportunities for U.S. Exporters Under the U.S.-Korea Trade Agreement

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U.S. goods and services trade with Korea, South totaled an estimated $168.6 billion in 2019. Exports were $80.5 billion; imports were $88.1 billion. The U.S. goods and services trade deficit with Korea, South was $7.6 billion in 2019.

Korea, South is currently our 6th largest goods trading partner with $134.0 billion in total (two way) goods trade during 2019. Goods exports totaled $56.5 billion; goods imports totaled $77.5 billion. The U.S. goods trade deficit with Korea, South was $20.9 billion in 2019.

Trade in services with Korea, South (exports and imports) totaled an estimated $34.6 billion in 2019. Services exports were $24.0 billion; services imports were $10.6 billion. The U.S. services trade surplus with Korea, South was $13.4 billion in 2019.

According to the Department of Commerce, U.S. exports of goods and services to Korea, South supported an estimated 358 thousand jobs in 2015 (latest data available) (227 thousand supported by goods exports and 131 thousand supported by services exports).

Exports

Korea, South was the United States' 7th largest goods export market in 2019.

U.S. goods exports to Korea, South in 2019 were $56.5 billion, up 0.4% ($229 million) from 2018 and up 97.6% from 2009. U.S. exports to Korea, South are up 30.1% from 2011 (pre-FTA). U.S. exports to Korea, South account for 3% of overall U.S. exports in 2019.

The top export categories (2-digit HS) in 2019 were: mineral fuels ($13 billion), machinery ($6.5 billion), electrical machinery ($5.7 billion), optical and medical instruments ($3.5 billion), and aircraft ($2.5 billion).

U.S. total exports of agricultural products to Korea, South totaled $7.6 billion in 2019, our 5th largest agricultural export market. Leading domestic export categories include: beef & beef products ($1.8 billion), pork & pork products ($593 million), prepared food ($509 million), fresh fruit ($405 million), and soybeans ($396 million).

U.S. exports of services to Korea, South were an estimated $24.0 billion in 2019, 3.3% ($774 million) more than 2018, and 81.2% greater than 2009 levels. It was up roughly 43.9% from 2011 (pre-FTA). Leading services exports from the U.S. to Korea, South were in the travel, intellectual property (industrial processes), and transport sectors.

Imports

Korea, South was the United States' 6th largest supplier of goods imports in 2019.

U.S. goods imports from Korea, South totaled $77.5 billion in 2019, up 4.3% ($3.2 billion) from 2018, and up 97.5% from 2009. U.S. imports from Korea, South are up 36.7% from 2011 (pre-FTA). U.S. imports from Korea, South account for 3.1% of overall U.S. imports in 2019.

The top import categories (2-digit HS) in 2019 were: vehicles ($21 billion), machinery ($15 billion), electrical machinery ($14 billion), mineral fuels ($4.2 billion), and plastics ($2.9 billion).

U.S. total imports of agricultural products from Korea, South totaled $705 million in 2019. Leading categories include: processed fruit & vegetables ($135 million), snack foods ($58 million), other fresh fruit ($38 million), fresh vegetables ($25 million), and other dairy products ($20 million).

U.S. imports of services from Korea, South were an estimated $10.6 billion in 2019, 5.6% ($565 million) more than 2018, and 35.1% greater than 2009 levels. It was up roughly 9.0% from 2011 (pre-FTA). Leading services imports from Korea, South to the U.S. were in the transport, travel, and intellectual property (industrial processes) sectors.

Trade Balance

The U.S. goods trade deficit with Korea, South was $20.9 billion in 2019, a 16.7% increase ($3.0 billion) over 2018.

The United States has a services trade surplus of an estimated $13 billion with Korea, South in 2019, up 1.6% from 2018.

Investment

U.S. foreign direct investment (FDI) in Korea, South (stock) was $39.1 billion in 2019, a 0.2% increase from 2018. U.S. direct investment in Korea, South is led by manufacturing, nonbank holding companies, and finance and insurance.

Korea, South's FDI in the United States (stock) was $61.8 billion in 2019, up 9.2% from 2018. Korea, South's direct investment in the U.S. is led by wholesale trade, manufacturing, and depository institutions.

Sales of services in Korea, South by majority U.S.-owned affiliates were $13.9 billion in 2017 (latest data available), while sales of services in the United States by majority Korea, South-owned firms were $23.9 billion.

U.S. - Korea Free Trade Agreement (2024)

FAQs

What are some facts about the US Korea free trade agreement? ›

The Facts: The U.S.-Korea Free Trade Agreement, known as KORUS, slashed tariffs on many goods traded between the two countries, increased U.S. access to South Korea's services market, and strengthened South Korea's intellectual property protections. The treaty was negotiated initially by the George W.

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What are the rules of origin in the US Korea free trade agreement? ›

Rules of Origin

In general terms, under the KORUS a good is originating when: The good is wholly obtained or produced entirely in the territory of the Parties (Republic of Korea, the United States or both); The good is produced entirely in the territory of one or more of the Parties and.

What does the U.S. import from Korea? ›

United States Imports from South Korea	Value	Year
Machinery, nuclear reactors, boilers	$21.10B	2023
Electrical, electronic equipment	$19.71B	2023
Mineral fuels, oils, distillation products	$4.90B	2023
Plastics	$4.03B	2023

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Which country does the U.S. run its largest trade deficit with? ›

By far the largest bilateral trade imbalance is with China. The United States ran a $419 billion goods deficit with China in 2018. The next largest contributor to the goods deficit, at $151 billion, is the European Union, followed by Mexico at $81.5 billion, Japan at $67.6 billion, and Malaysia at $26.5 billion.

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What are rich families called in Korea? ›

A chaebol (/ˈtʃeɪbɒl, ˈdʒɛbəl/; Korean: 재벌, lit. 'rich family' or 'financial clique'; Korean pronunciation: [tɕɛ̝.

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Why did the US want to get involved with Korea? ›

America wanted not just to contain communism. - they also wanted to prevent the domino effect. close domino theoryAn American idea that if one country fell to communism, others would follow - like a row of dominoes.

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What is the current relationship between the US and Korea? ›

The United States and South Korea are allies under the 1953 Mutual Defense Treaty. Under the agreement, U.S. military personnel have maintained a continuous presence on the Korean peninsula.

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What is the trade agreement between the U.S. and Korea? ›

The United States and the Republic of Korea signed the United States-Korea Free Trade Agreement (KORUS FTA) on June 30, 2007. U.S. goods and services trade with Korea, South totaled an estimated $168.6 billion in 2019. Exports were $80.5 billion; imports were $88.1 billion.

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What is the trade relationship between the U.S. and Korea? ›

U.S. goods and services trade with Korea, South totaled an estimated $224.4 billion in 2022. Exports were $94.4 billion; imports were $130.1 billion. The U.S. goods and services trade deficit with Korea, South was $35.7 billion in 2022.

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Why does the U.S. trade with South Korea? ›

The U.S.-Korea trade agreement gives American companies additional access to Korea's $580 billion market in these major services and more – giving American services companies a chance to build on an already-strong export record and to support more well-paying services jobs here at home, over and above the 70,000 jobs ...

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