South Korea’s Auto Exports Fall 29.8% in August Amid Strikes and Fewer Workdays

South Korea’s automobile exports fell sharply in August as fewer working days and labor disruptions reduced production and overseas shipments, government data showed Thursday.

The value of vehicle exports declined 29.8 percent from a year earlier to $3.85 billion, down from $5.49 billion in August 2025, according to the Ministry of Trade, Industry and Resources. The ministry attributed the contraction to summer holidays, which reduced the number of operating days, and production losses caused by strikes at some automakers.

The decline was broad across South Korea’s major export markets. Shipments to North America, the country’s largest regional destination in the data, fell 28.2 percent to $1.84 billion. Exports to the European Union decreased 16.8 percent to $659 million.

The downturn was steeper in other regions. Automobile exports to Asia plunged 41.9 percent to $343 million, while shipments to the Middle East dropped 23.6 percent to $234 million.

Export volume also weakened substantially. South Korean manufacturers shipped 146,000 vehicles overseas during the month, a decrease of 26.9 percent from a year earlier. The similar declines in shipment value and unit volume indicate that the August setback reflected a broad reduction in vehicle flows rather than only changes in the mix or price of exported models.

Domestic indicators also pointed to a weak month for the industry. Sales in South Korea fell 20.8 percent year on year to 110,000 vehicles, while domestic production dropped 35.8 percent to 206,000 units. The production decline was deeper than the fall in exports, consistent with the ministry’s assessment that temporary factory disruptions weighed heavily on the monthly figures.

Even amid the overall contraction, lower-emission vehicles held a significant place in the domestic market. Six out of every 10 vehicles sold in South Korea during August were all-electric, gasoline-hybrid or other eco-friendly models. That share highlights the continuing shift in consumer demand toward electrified vehicles despite the decline in total sales.

The ministry said it expects automobile exports and production to improve later in the year. Major automakers have reached wage agreements, reducing the risk that the strike-related production losses seen in August will continue at the same scale. The pace of any rebound will depend on how quickly factories normalize output and whether demand recovers across key overseas markets.