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Economy

South Korea Becomes China's 2nd Largest Trading Partner In The Fourth Quarter, Surpasses Japan

By January 19, 2016 at 4:21 am
South Korea Becomes China's 2nd Largest Trading Partner In The Fourth Quarter, Surpasses Japan (Photo : Chung Sung-Jun | Getty Images News)

Data shows that China became South Korea's second-largest trading partner in the fourth quarter of last year, according to a report from Yonhap News Agency.

The figure that came out has unseated Japan for the first time.

Data from the Korea International Trade Association (KITA) show that South Korea's trade with China in October through December of 2015 came in at $75.6 billion while the South's trade with Japan reached $71.7 billion.

The U.S. is South Korea's top trading partner.

The KITA said that China's rise as the second-largest trading partner of South Korea is due to the South's relatively good performance in the second-largest economy in the world.

China Central Television adds that the China-South Korea Free Trade Agreement, which went into effect in December, also contributed.

The trade agreement also means that the trade volume between the two countries is expected to continue increasing in the future.

Business Korea reports that South Korea's imports from China increased by one percent from a year ago to one percent from a year ago to $101.38 billion while China's exports to Japan decreased by 9.2 percent.

The changes resulted in a decline in the South's trade surplus with respect to China, specifically, the surplus fell $16.8 billion year-on-year to $73.1 billion last year.

South Korea's exports to China have also dropped 8.2 percent on-year in 2015, compared with a 14.1 percent annual fall in Beijing's overall imports.

South Korean goods, though, accounted for 10.4 percent of China's import market last year, the first time that South Korea's goods recorded a double-digit share.

On the other hand, South Korea's investment in China in the first 11 months of 2015 came to $3.7 billion.

Data shows that the South's investment is $700 million more than Japan's investment, the first time in eight years that South Korea is able to outstrip Japan in investment in China.

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