S. Korea's monthly exports hit 2nd highest ever on strong chip shipments
Seoul, Aug 1
South Korea's monthly exports soared to the second highest ever by moving up nearly 63 per cent in July from a year earlier, data showed on Saturday, amid solid global demand for memory chips.
Outbound shipments came to $98.89 billion in July, according to the Ministry of Trade, Industry and Resources. It was slightly below the all-time high record of $102.2 billion posted in June.
Imports rose 26.5 percent on-year to $68.56 billion, resulting in a trade surplus of $30.32 billion, reports Yonhap news agency.
By sector, exports of semiconductors, the backbone of Asia's fourth-largest economy, shot up 179 percent over the period to $41 billion as global prices for memory products remained high amid the strong demand from artificial intelligence (AI) data centres.
"The popularisation of AI technology, with the industry entering the era of agentic AI, continued to drive demand for memory chips used in servers," the industry ministry said. "Prices for both DRAM and NAND also continued to rise."
The figure topped the $40 billion mark for two consecutive months. South Korea's total exports, excluding the crucial semiconductor sector, rose 26 percent on-year in July.
Exports of automobiles also rose 7 percent to $6.2 billion on the back of strong global demand for hybrid and other eco-friendly models.
Outbound shipments of petroleum products jumped 34.1 percent to $5.68 billion, while those of petrochemical products gained 10.3 percent to $4.18 billion.
"Exports of petroleum products decreased in volume following the government's efforts to stabilise domestic supply, but uncertainties in the Middle East led to higher oil prices, resulting in gains in export value," the ministry said.
The industry ministry said exports of mobile devices rose 51 percent to $1.81 billion, as premium smartphones, such as the Galaxy S26 lineup, maintained solid sales despite soaring chip-driven production costs.
Outbound shipments of home appliances, on the other hand, shed 4.1 percent to $600 million, becoming the only declining category among the country's top 20 export items, amid sluggish demand from the United States following a slump in the housing market.
By destination, exports to China nearly doubled to $21.68 billion on the back of strong shipments of chips, nonferrous metal products and petroleum goods.
Exports to the U.S. surged 68.7 percent to $17.4 billion, driven by AI data centre investment projects rolled out by major high-tech companies, the data showed.
The monthly report also showed exports to Southeast Asian countries rose 73.7 percent to $18.8 billion, driven by strong shipments of semiconductors, displays and ships. Exports to the European Union gained 55.7 percent to $9.38 billion on the back of robust shipments across a broad range of products.
"Amid the strong performance of semiconductors, 19 of the country's 20 major export categories posted gains," Industry Minister Kim Jung-kwan said in a release, noting South Korea has successfully diversified its export portfolio.
— IANS
Reader Comments
South Korea's export success story is a lesson for emerging economies like India. They've created a robust ecosystem around semiconductors and aren't dependent on just one market - you see balanced growth across China, US, and ASEAN nations. We need to diversify our export portfolio beyond IT services and software. 📊
Remarkable resilience by the Korean economy! Despite global uncertainties, they've achieved near-record exports. The $30.32 billion trade surplus is humongous. India had trade deficits in many months, so definitely taking inspiration from this approach - especially the focus on value-added manufacturing rather than just raw materials. 🙌
The exponential growth in chip exports to $41 billion is staggering. Agentic AI is clearly the next frontier. As an Indian entrepreneur, I wonder how we can collaborate with Korea - perhaps more joint ventures in advanced tech. Their success in sustaining high-value exports while managing domestic supply stability is noteworthy.
While the numbers are impressive, we should note that Korea's export juggernaut is dependent on geopolitics. The near doubling of exports to China - is that a good sign of recovery or simply cyclical timing? India needs to forge its own path in tech manufacturing, not just emulate but innovate. Still, great to see Asian economies thriving!
This is what focused industrial policy looks like! Korea went from semiconductor makers to global leaders in memory chips. India has the talent pool and resources - imagine if our manufacturing sector grew at even half this pace. The Make in India initiative needs to learn so much from Korea's innovation in AI-driven manufacturing. 🇮🇳💪
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