Large-scale protests in France against high prices and declining public services are raising alarms for South Korean exports. Exports have already decreased by over 20% this year, particularly in the shipping sector, and the uncertainty surrounding consumer goods exports is growing amid local consumption declines.
◆ South Korea's Exports to France Plummet 22.6%... Shipping Decline Dominates Despite Growth in Consumer Goods
According to the Korea Customs Service's trade statistics released on October 19, South Korea's exports to France from January to September totaled $3.764 billion, a decrease of $1.098 billion (22.6%) compared to $4.862 billion during the same period last year. While overall exports have surged nearly 60% this year, approaching $1 trillion, exports to the European Union have also increased by 19.4%, yet exports to France continue to decline.
The most significant impact has come from the shipping sector. From January to September, exports of ships and floating structures fell to $1.075 billion, down $1.139 billion (51.5%) from $2.213 billion in the same period last year. The share of ships in total exports dropped from 45.5% to 28.5%. Excluding ships, exports to France increased by 1.5%, from $2.649 billion last year to $2.689 billion this year.
This decline reflects the unique characteristics of the shipbuilding industry, where export performance can vary significantly based on delivery schedules. For instance, South Korea's ship exports to France reached approximately $697 million in August last year, but there were no ship exports recorded in August this year.
Other major export categories also showed declines. Exports of vehicles, including automobiles and parts, decreased from $671 million last year to $561 million this year, a drop of 16.4%. Machinery exports fell from $336 million to $240 million (28.6%), and aircraft and parts exports decreased from $150 million to $73 million (51.4%).
However, exports of consumer goods continue to grow. From January to September, consumer goods exports rose by 6.5% to $723 million. Raw materials also increased by 22.8%. Exports of electrical equipment and components surged from $390 million to $511 million (31.0%), while medical supplies skyrocketed from $83 million to $231 million (177.6%).
◆ High Prices and Protests Compound Issues... Concerns Over Local Consumption and Distribution Disruptions
The situation is exacerbated by deteriorating consumer conditions in France. According to the National Institute of Statistics and Economic Studies (INSEE), the consumer confidence index in September was 86, significantly below the long-term average of 100. Households' willingness to make large purchases and their assessments of living standards also remained below average.
Additionally, large-scale protests erupted across France on October 17 in response to rising living costs and declining public services. The French Interior Ministry reported that approximately 550,000 people participated in the protests, with some demonstrators in major cities like Paris, Marseille, and Lyon engaging in arson, looting, and attacks on public facilities.
As some shops temporarily closed and facilities were damaged, there is a growing possibility of a freeze in the local distribution market. If the protests continue, the combination of declining consumer sentiment and disruptions in store operations could negatively impact the sales of South Korean consumer goods, including automobiles, electronics, and cosmetics.
Logistical conditions also pose a risk. The French road transport association OTRE had announced plans for collective action on October 21-22 in response to fuel cost burdens but decided to halt these plans following government support promises. While the immediate likelihood of collective action has decreased, road blockages or disruptions in distribution facilities due to escalating protests could still lead to delivery delays and increased logistics costs.
Concerns are growing that social unrest in France could lead to reduced consumption and fewer import orders. With exports of automobiles and machinery already declining, worsening local consumption and logistical conditions could further burden South Korean exporters.
The government is closely monitoring the situation. A government official stated, "So far, we believe there have been no direct issues affecting our companies. However, given the potential impact on distribution, logistics, and local sales, we are monitoring the situation and will communicate with businesses to provide support where necessary."
* This article has been translated by AI.
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