Trading Partner Portal: South Korea

Key Country Contacts

Source: US Department of Commerce

Trade Overview

Korea is California's fifth largest exporting partner. In 2010, California exported $8.1 billion to Korea.

Korea is a significant market for U.S. small and medium-sized companies, which make up a majority of U.S. businesses exporting to Korea.

Korea is a $1 trillion economy and is the United States' seventh largest goods trading partner. Korea's commercial relationship with the United States is largely complementary. In 2010, two-way trade between the two countries totaled over $87.7 billion. In 2010, U.S. goods exports to Korea were $38.8, a significant increase over the previous year, at  $28.6 billion.

In the first quarter of 2009, U.S. foreign direct investment in Korea totaled roughly $358 million and was concentrated largely in the manufacturing, banking, and wholesale trade sectors. Korea currently enjoys broad access to the U.S. market and the United States is one of Korea's larger exporting markets, importing 11 percent of Korea's worldwide exported goods.

There are 1.6 million Korean-Americans in the United States.  There is also a large population of Korean students studying at higher education institutions across the U.S.  Korean visitors enter the United States via the U.S. Visa Waiver Program.

The State of the U.S.-ROK Alliance
A Korea Program Essay
Council on Foreign Relations, October 2011

U.S. Census Bureau Trade in Goods - South Korea
WTO Trade Statistics - Republic of Korea

Creating Opportunities Through Green Growth 
   - Presentation at the U.S.-Korea Business Council Meeting, February 6, 2010

California and Korea : A Growing Partnership
Business Roundtable, June 2007

U.S.-Korea Free Trade Agreement

After a year-and-a-half of negotiations, the U.S.-Korea Free Trade Agreement was signed on June 30, 2007. A successful FTA would be the biggest free trade pact the United States has reached since it entered into the North American Free Trade Agreement (NAFTA) over a decade ago. This comprehensive agreement was approved by the U.S. House (278-151) and the U.S. Senate (83-15) on October 12, 2011.

The U.S. International Trade Commission estimates that with full implementation of the KORUS FTA, U.S. goods exports to Korea will likely increase by $9.7-$10.9 billion and U.S. imports of goods from Korea will likely increase by $6.4-$6.9 billion, enhancing our already balanced trade partnership.

CalChamber Links

• U.S.-Korea Free Trade Agreement
• Association of Southeast Asian Nations (ASEAN)
• U.S.-Korea Trade Partnership

CalChamber Position

The California Chamber of Commerce, in keeping with long-standing policy, enthusiastically supports free trade worldwide, expansion of international trade and investment, fair and equitable market access for California products abroad and elimination of disincentives that impede the international competitiveness of California business. New multilateral, sectoral and regional trade agreements ensure that the United States may continue to gain access to world markets, resulting in an improved economy and additional employment of Americans.

Reasons for Position

• The U.S.- Korea FTA will send a strong signal that the United States intends to remain heavily engaged in the region for a long time to come in business, economics, security and international politics.
  
• The FTA will strengthen a 50-year-old alliance between the United States and South Korea, while reinforcing the economic and political reforms South Korea has made over the past decade.

WEST Program

The WEST (Work, English Study, and Travel) Program is a unique exchange program that provides an opportunity for Korean university students and recent graduates to come to the United States for a period of 18 months to study English and to participate in professional level internships of up to 12 months.

This program, which was agreed to by Korean President Lee and U.S. President Bush in 2008, was launched late last year and is fully supported by the Korean and U.S. governments. 

The U.S. Department of State's Bureau of Education and Cultural Affairs has designated the Korea-U.S. Science Cooperation Center in Vienna, Virginia (KUSCO) as a sponsoring organization of the WEST Program.  If your company or organization would like learn more about this program, please visit www.kusco.org/west or contact Jim Kelman at jkelman@kusco.org.

2010 Asia Trade Mission

Governor Schwarzenegger announced in July 2010 that he would lead a delegation of California business leaders and key State of California government officials to Asia in September 2010. Asia is a dynamic and growing market for California products, produce and intellectual property. The dates of the trade mission were September 9, 2010 to September 15, 2010. The delegation started in Hangzhou and Shanghai, traveled to Tokyo and ended in Seoul. This trade mission was successful and will bring many economic and cultural benefits to the people of California.

Recent Events

Korean Ambassador Highlights Trade Agreement at CalChamber Forum
(September 8, 2010)  Final approval of the U.S.-Korea Free Trade Agreement (FTA) will create American jobs, His Excellency Duk-Soo Han, ambassador to the United States from the Republic of Korea, told a California Chamber of Commerce gathering last week. Click Here for Full Article Click Here to Watch Video
CalChamber Hosts Mayor of Gangnam, Korea	Korean Ambassador Urges Support for Free Trade Agreement
(January 31, 2008) CalChamber President Allan Zaremberg exchanges business cards with the Mayor Maeng Jung Ju of Gangnam, Korea on January 31, 2008. Accompanying the Korean delegation is Ronnie Guyer (center) field representative for Assemblyman Van Tran (R-Costa Mesa).	(August 29, 2007) The California Chamber of Commerce yesterday hosted His Excellency Lee Tae-sik, Korean Ambassador to the United States, at an international luncheon forum where he discussed the U.S.-Korea Free Trade Agreement (FTA), currently pending before Congress, and enumerated the benefits of the FTA for California businesses.  Read the Full Article