Trade between South Korea and Malaysia surged in 2025, driven by strong demand for semiconductors and electrical and electronic products, according to Malaysian government data released Friday.
The Malaysian Embassy in Seoul said bilateral trade reached $27.42 billion last year, up 14.2 percent from 2024, outpacing Malaysia’s overall trade growth rate of 13.5 percent. The figures were cited from the Malaysian External Trade Development Corporation, or Matrade.
Korea’s exports to Malaysia climbed 24.4 percent year on year to $15.1 billion, led by electrical and electronic products. Imports in this category totaled $7.94 billion, surging 91.6 percent from 2024, reflecting rising global demand tied to artificial intelligence and 5G, Matrade said.
Korea’s imports from Malaysia rose 3.7 percent to $12.31 billion. Electrical and electronic products remained the largest category, accounting for 34.8 percent of total imports, followed by liquefied natural gas at 26.5 percent. Imports of machinery, equipment and parts recorded the fastest growth, jumping 157.5 percent to $686.6 million.
Matrade expects the Korea-Malaysia Free Trade Agreement, finalized at the end of 2025, to further deepen bilateral economic ties through tariff reductions, enhanced regulatory cooperation and expanded market access.
Under the agreement, Korea secured additional access for key export items, including automobiles, steel and chemical products. Tariffs on electric vehicle assembly parts, currently set at 10 percent, will be eliminated, while tariffs on completed electric sport utility vehicles will be cut in half from 30 percent to 15 percent.
Source: The Investor
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<p>Time: November 2025<br /> By: WTO and International Trade Group, Legal Department – VCCI</p>
