Exports – South Korea Posts Sharp Trade Growth on Chip Demand
Exports – South Korea recorded a strong rise in overseas shipments during the first 20 days of February, supported largely by robust global demand for semiconductors. Fresh figures released Monday by the Korea Customs Service indicate that exports climbed significantly compared with the same period last year, reflecting improving trade conditions for the export-dependent economy.
Semiconductor Boom Lifts Overall Shipments
According to customs data, outbound shipments totaled $43.5 billion between February 1 and February 20. This marks a substantial increase from $35.2 billion recorded during the same timeframe a year earlier. The growth of 23.5 percent represents the highest level ever posted for this specific period.
Semiconductors played a central role in the surge. Chip exports more than doubled compared to last year, benefiting from heightened global demand linked to artificial intelligence applications and expanding data infrastructure. Semiconductor shipments alone accounted for 34.7 percent of the country’s total exports during the 20-day span, a sharp increase of 16.4 percentage points from the previous year.
Imports Also Rise, Trade Surplus Maintained
Imports showed moderate growth during the same period. The country brought in $38.6 billion worth of goods, up 11.7 percent from a year earlier. With exports rising faster than imports, South Korea recorded a trade surplus of $4.9 billion for the period.
Despite fewer working days this year — 13 days compared with 15.5 days last year — the daily average export volume rose sharply by 47.3 percent. Analysts say the surge reflects sustained overseas demand rather than seasonal factors.
Mixed Performance Across Key Industries
Beyond semiconductors, other sectors delivered varied results. Exports of petroleum products increased 10.5 percent year-on-year, reaching $2.9 billion. Shipments of vessels also posted strong growth, rising 22.7 percent to $1.3 billion.
However, automobile exports declined notably. Overseas vehicle shipments fell 26.6 percent compared with the same period last year, totaling $2.6 billion. Industry observers attribute the decline to softer demand in certain markets and shifting production schedules.
Strong Demand from Major Trading Partners
China remained South Korea’s largest export destination during the period. Shipments to China jumped 30.8 percent from a year earlier, totaling $8.7 billion. The rise reflects improved semiconductor sales and stronger intermediate goods exports.
Exports to the United States also posted solid gains, climbing 21.9 percent to $8 billion. The increase came despite ongoing tariff measures introduced under the administration of U.S. President Donald Trump. Trade officials noted that demand for high-tech components and industrial goods helped offset policy-related uncertainties.
January Performance Signals Continued Momentum
The February data follows an equally strong performance in January. Last month, South Korea’s exports grew 33.9 percent year-on-year, reaching $65.85 billion. That expansion was also driven primarily by semiconductor demand, reinforcing expectations that the technology sector will remain a key pillar of trade growth in the coming months.
Economists say the sustained rise in chip exports highlights South Korea’s central role in the global semiconductor supply chain. As industries worldwide expand investments in artificial intelligence, cloud computing, and advanced electronics, demand for high-performance memory and logic chips is expected to remain steady.
While some sectors face headwinds, particularly in automobiles, the broader export picture suggests resilient external demand. Policymakers are closely monitoring global economic conditions, currency movements, and geopolitical developments that could influence trade flows in the remainder of the year.
For now, the latest customs data underscores the strength of South Korea’s export sector and its growing reliance on advanced technology products to drive economic expansion.