Summary:
The Korean economy contracted by only 1% last year thanks to no lockdown, massive government intervention and strong exports in the last quarter. The economy is now projected to rebound by as much as 3% this year.
Our trade with Korea has held up relatively well (+1%) when compared to the overall performance of New Zealand’s two-way trade with the world (-13%).
The strong performance of food and beverage products in Korea (such as kiwifruit, wine, meat, and dairy) has softened the impact of COVID on two-way trade.
New Zealand exporters are well positioned to capitalise on fast growing e-commerce opportunities in Korea and the New Zealand brand continues to thrive.
But performance in other areas was mixed, with exports of timber, electrical machinery, seafood, and iron/steel to Korea declining.
There is persistent underlying Korean demand for New Zealand education which Education New Zealand has been working with partners to capitalise on.
But the worst is yet to be reflected in tourism statistics which do not currently capture the impact of COVID on summer peak tourism season.
