South Korea's car exports shrank more than 4% from a year earlier in May as outbound shipments to the United States sharply dropped on Washington's hefty tariffs on imported vehicles, data showed on Tuesday.&nbsp;
The value of outbound shipments of automobiles came to $6.2 billion last month, down 4.4% from a year earlier, according to data from the Ministry of Trade, Industry and Energy, reports Yonhap news agency.
The figure marks the second-highest export value for any May but also the second consecutive month of decrease.
In terms of volume, exports fell 3.1% on-year to 247,577 vehicles. However, shipments of eco-friendly vehicles went up 10.2% to a new monthly high of 75,000 units thanks to strong demand for hybrid cars.
The ministry attributed the overall decrease in auto exports to a base effect from a record monthly figure posted a year ago and impacts of the U.S. Donald Trump administration's 25% tariffs on all imported cars and auto parts.&nbsp;
Exports to the U.S. slid 27.1% on-year to $2.5 billion in May, with broader shipments to the North American region dipping 22.3 percent to $3.08 billion.
Shipments to the Middle East also fell 7.2% to $391 million.
On the other hand, exports to the European Union and Asia increased 28.9% and 45.1% to $837 million and $683 million, respectively.
At home, sales of automobiles rose 0.4% on-year to 142,000 units in May, while domestic production went down 3.7% to 359,000 units.
Notably, monthly sales of eco-friendly vehicles surpassed those of internal combustion vehicles for the first time here.
More than 73,000 units of eco-friendly vehicles were sold in South Korea in May, up 39% from a year earlier, according to the ministry.
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Auto exports down 3.1%, but eco-car shipments hit record 75K on hybrid demand

S Korea’s Exports Dip, Eco-Car Sales Surge

Auto exports down 3.1%, but eco-car shipments hit record 75K on hybrid demand

June 17, 2025 | 15:22 IST

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