According to trade statistics from the Korea International Trade Association (KITA) — a non-profit umbrella economic organization — South Korea’s trade balance with China recorded a deficit of $3.9 billion in January, marking it the ROK’s largest trade deficit. There are concerns that this year may be the first time South Korea logs a trade deficit with China since 1992. From 2018 to 2022, South Korea consistently logged trade surpluses with China.

However, South Korea’s trade surplus last year was much smaller compared to previous years due to China’s economic slowdown as a result of its Zero-COVID policy and rising prices of industrial materials, such as lithium. Analysts expect this trend to continue for the foreseeable future as the U.S. intensifies its chip restrictions on China.