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Driven by a surge in export sales of semiconductors, South Korea’s exports surged 93.7% year-on-year in October, the largest increase in more than 50 years. The full-year export volume is expected to reach US$1 trillion in November.
Benefit from increased semiconductor export sales,south korea Exports grew at a stronger-than-expected pace in October, and the growth rate was the largest in more than 50 years, approaching the annual export target of US$1 trillion.
Preliminary data released by the South Korean Ministry of Trade, Industry and Energy on the 1st showed that South Korea’s exports in October increased by 93.7% year-on-year to US$115.28 billion, up from a revised 83.7% increase in September. This was more than analysts had expected and was the largest increase since January 1974.
As a result, South Korea’s cumulative exports from January to October this year reached US$930 billion, only US$70 billion short of the US$1 trillion target. After achieving this goal, South Korea will join the United States, China andGermany Later it became the fourth country in the world to achieve this feat.
“As exports continue to grow and exceeded US$110 billion in October, it is certain that annual exports will reach the US$1 trillion target in November,” said Kim Jong-kwan, Minister of Trade, Industry and Energy.
South Korea’s imports in October rose 36% year-on-year to US$72.78 billion, with a trade surplus of US$42.5 billion, down from a revised US$49.97 billion in September, but still above market expectations.
South Korea, home to the world’s two largest memory chip makers, Samsung Electronics and SK Hynix, is benefiting from an artificial intelligence (AI) boom. The explosive growth of AI infrastructure investment helped South Korea’s semiconductor exports in October more than triple from the same period last year, reaching US$56.44 billion.
Both Samsung and SK Hynix have reiterated that they expect the semiconductor shortage to persist for several years, suggesting that AI will continue to drive strong chip demand and supporting expectations that the broader economy will continue to grow.
October export data also showed that the non-chip industry also performed well. Automobile exports rose 18% year-on-year in October, after the Hyundai Motor strike was resolved and production normalized. Exports of petroleum and petrochemical products also increased by 80% and 28% respectively.
Looking at the export market, South Korea’s exports to the United States nearly doubled year-on-year in October, mainly supported by demand for semiconductors, computers and AI infrastructure electronic components; Exports to China more than doubled, also driven by exports of semiconductors and wireless communications equipment; Exports to Southeast Asia and the European Union increased by 128% and 56.4%, respectively, mainly due to strong exports of semiconductors and automobiles.
Summary FAQ
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Mainly due to substantial growth in export sales of semiconductors and a surge in investment in AI infrastructure, which have boosted chip demand; Additionally, exports of automobiles, petroleum and petrochemical products also surged simultaneously, pushing overall export growth beyond expectations.
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South Korea’s cumulative exports from January to October this year reached US$930 billion, just US$70 billion short of US$1 trillion. If the strong momentum continues in October, there is a greater chance that the target will be met in November, officials said.
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There has been significant growth in exports to the United States, China, Southeast Asia and the European Union, mainly due to strong demand for semiconductors, computers, AI equipment, wireless communications equipment and automobiles, with some markets growing severalfold.
