Won-based export settlements drop in 2024: BOK

The use of the won accounted for 2.7 percent of all export settlements last year, down 0.2 percentage point from a year earlier, according to the data from the Bank of Korea (BOK), reports Yonhap news agency.

The share had climbed in 2023 for the first time in six years, but fell again in 2024. The decline was largely attributed to the slower growth in automobile exports, which are typically settled in Korean won. Car exports rose 6 percent last year, falling short of the overall export growth of 8.1 percent, the BOK said.

A drop in machinery exports also contributed to the decline, it added.

The U.S. dollar remained the dominant currency used to settle South Korean exports in 2024, accounting for 84.5 percent of total export settlements, up from 83.1 percent in 2023.

The increase in dollar-denominated settlements was driven by robust semiconductor exports, which are typically settled in U.S. dollars. Outbound shipments of chips soared 43.9 percent on-year to a record high of US$141.9 billion in 2024.

The use of the euro for export settlements declined to 6.0 percent in 2024 from 6.8 percent a year earlier, while the share for the Japanese yen dropped by 0.3 percentage point to 2.0 percent.

The Chinese yuan accounted for 1.5 percent of total export settlements last year, down from 1.7 percent in the previous year, the data showed.

South Korea's exports advanced 8.2 percent on-year in 2024 to set a new annual record on robust shipments of semiconductors.

Outbound shipments came to US$683.8 billion last year, compared with the previous record of $683.6 billion set in 2022, according to the data compiled by the Ministry of Trade, Industry and Energy.

Imports fell 1.6 on-year to $632 billion, resulting in a trade surplus of $51.8 billion. The ministry said outbound shipments of eight out of 15 major export items gained ground in 2024.