[Editorial] Diversify markets

South Korea's exports rose from a year earlier in June, rebounding from an on-year drop the previous month.

Exports to the US and China decreased largely affected by their trade conflicts, while exports to Europe increased markedly.

Exports came to $59.8 billion last month, up 4.3 percent from the same month last year, Ministry of Trade, Industry and Energy data showed Tuesday.

Outbound shipments were the highest for any June.

Semiconductors and cars, the country's top two export items, led the exports rally. The growth of the global artificial intelligence market sparked semiconductor exports, while electric vehicle exports to Europe also played a big role.

Notable is that exports to the US and China fell 0.5 percent and 2.7 percent, respectively, while exports to the EU jumped 14.7 percent.

Exports to the US and China declined two straight months beginning in May, mainly impacted by tariffs.

If global US tariffs are enforced in full and Washington turns up its checks on China, South Korea's exports to the two countries are feared to shrink further in the second half.

In addition to exports to the EU, shipments to Taiwan, Japan, the Middle East and members of the Association of Southeast Asian Nations increased about 3 percent.

The June exports deserve high praise in that they came despite war in the Middle East and a stagnant domestic economy.

Trade is essential for South Korea, a country with limited natural resources. Even so, its high dependence on the US and China runs the risk of stalling its economy.

Last year, China and the US accounted for 19.5 percent and 18.7 percent of South Korea's total exports, respectively. To secure stable export expansion, South Korea should increase shipments to regions other than the two countries.

South Asia and Southeast Asia have great growth potential, Europe is trying to hold China's advance in check, the Middle East has high demand for industry transformation and South America and Africa have many resources. South Korea needs to further cultivate these markets.

Concentration of trade on several items is another problem to resolve.

South Korea's trade surplus with the US is propelled mostly by three items — cars, semiconductors and machinery — which makes it vulnerable to trade protectionism and tariffs.

Particularly, the Donald Trump administration seems to treat South Korea's automotive and semiconductors as major targets of its tariff to reduce US trade deficits.

One of the problems related to trade with China is that South Korea relies on the country for a significant part of its supply chains.

South Korea's increasing dependence on China for materials could impede the growth of its promising manufacturing sectors such as secondary batteries.

The US and China are engaged in a long-term and multidimensional competition to reorganize global economic and geopolitical orders. Conditions of South Korea's exports to the US and China are increasingly difficult due to rising US tariff barrier and China's growing manufacturing sector. Nevertheless, export is the only way for South Korea to prop up its growth.

The June exports that recovered thanks to increased exports in regions other than the US and China indicates the importance of diversifying markets. Now is the time to go all out to develop new markets and items while dealing effectively with US tariff negotiations.

In a bid to help diversify export markets, the government should focus on free trade agreements and multilateral trade deals.

The government must reignite debate on whether to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership comprising 12 nations. It should also examine whether to pursue the Korea-Japan free trade agreement.

The trade environment is rapidly changing. Even if Korea concludes the US tariff negotiations successfully, its trade problems are not likely to vanish. Reducing trade dependence on the US and China has become more important than ever.