Semiconductor – South Korea Records Strong Export Growth Driven by Chip Demand
Semiconductor -South Korea reported a sharp rise in exports during the first 10 days of July, supported mainly by robust overseas demand for semiconductor products. According to the latest figures released by the Korea Customs Service, the country’s exports reached 29.8 billion US dollars between July 1 and July 10, marking a 53.9 percent increase compared with 19.3 billion US dollars during the same period last year. The latest performance also represents the highest export value ever recorded for a 10-day period by the customs authority, surpassing the previous record of 28.6 billion US dollars set in June.
Trade Balance Shows Positive Momentum
The data also indicated that imports climbed 17.4 percent year-on-year to 23.5 billion US dollars during the same period. With export growth significantly outpacing imports, South Korea posted a trade surplus of 6.4 billion US dollars. The figures reflect continued strength in the country’s external trade despite ongoing global economic uncertainties and shifting market conditions.
Semiconductor Sector Leads Export Performance
Semiconductor shipments remained the biggest contributor to export growth as international demand for advanced chips stayed strong. Alongside semiconductors, other key industries also delivered positive results. Exports of petroleum products increased by 22.7 percent to 1.75 billion US dollars, while ship exports registered an impressive 75.1 percent jump, reaching 1.54 billion US dollars. The broad-based improvement highlights healthy demand across several major manufacturing sectors.
China and United States Remain Key Markets
Exports to South Korea’s largest trading partners recorded notable gains during the reporting period. Shipments to China surged by 88.7 percent, reaching 7 billion US dollars, making it the country’s biggest export destination. Exports to the United States also expanded considerably, rising 43.2 percent to 4.91 billion US dollars. The increase in shipments to both markets underscores sustained international demand for South Korean technology and industrial products.
Year-to-Date Export Figures Continue to Improve
As of the latest reporting date, cumulative exports for the year stood at 526.1 billion US dollars, representing a 48.6 percent increase compared with the corresponding period last year. South Korea also recorded a cumulative trade surplus of 144 billion US dollars, reflecting the continued strength of its export-oriented economy and improved external trade performance throughout the year.
Central Bank Sees Continued Growth in Chip Industry
Separately, the Bank of Korea stated that the global semiconductor market continues to experience supply constraints despite rising production efforts. In a report submitted to lawmaker Park Sung-hoon, the central bank noted that demand for semiconductors has accelerated rapidly because of expanding investment in artificial intelligence infrastructure, while supply has not increased at the same pace.
The central bank also rejected concerns that the semiconductor cycle has already reached its peak. According to the report, the current expansion differs from previous industry cycles because it is being driven by long-term corporate investment aimed at preparing for structural changes expected from the growing adoption of artificial intelligence technologies. As a result, officials believe the industry’s growth momentum is likely to continue for the foreseeable future.