The Korea International Trade Association (KITA) announced on the 10th that it will implement changes to the item classification system in its trade statistics service (K-stat) starting June 1st. This adjustment aligns with the Ministry of Trade and Industry's (MTI) revision of codes, significantly affecting how trade data is analyzed and utilized for policy formulation.

The MTI code is designed to realistically categorize export and import goods in accordance with the evolving industrial landscape, primarily utilizing the HS codes for systematic classification. The changes are a strategic response to emerging growth items and shifting export structures, aimed at enhancing data relevance and accuracy.

Significantly, the number of key export items has expanded from 15 to 20. Five new categories—electrical equipment, agricultural and marine products, cosmetics, daily necessities, and non-ferrous metals—have been introduced as they exhibit increasing export volume and importance. For instance, in Q1, cosmetics exports alone reached $3.1 billion, marking a 22% increase compared to the same period last year, underscoring the sector's growth potential.

Additionally, adjustments were made to the sub-classifications for seven established categories such as semiconductors and automobiles. This shift enables a more precise reflection of current export conditions. Notably, new codes for the semiconductor segment include distinctions between system chips and memory chips like DRAM and NAND. In the automotive sector, subcodes have been restructured based on model types and powertrain variations, improving data granularity.

KITA plans to incorporate these MTI code revisions into its K-stat service by June 1st, retroactively applying the changes to data from 2022 to ensure consistent and stable statistical interpretation. To support balanced analysis with historical data, the latest HSK-MTI code reference table will be made available on the KITA website starting May 8th.

Hong Ji-sang, head of the KITA Analysis Division, stated, "With the MTI code revision and system integration, we can now more accurately gauge the export growth trends of emerging sectors. We will continue to facilitate the effective use of the revised item classification in our trade statistics service by providing relevant information. This initiative is critical for stakeholders engaged in trade, ensuring they have access to the most pertinent data for informed decision-making."