South Korea exports hit record high driven by semiconductor surge

South Korea's exports for the first ten days of August reached a record high of $21.3 billion, a 45.3% increase compared to the same period last year. This surge was primarily driven by a massive 155.4% jump in semiconductor exports, which totaled $10 billion and accounted for 46.8% of total export value. The boom is attributed to surging demand for artificial intelligence (AI) semiconductors.

While semiconductors and petroleum products saw significant growth, other sectors experienced declines, including passenger cars, which fell by over 80% due to seasonal production adjustments. Exports to China rose by 134.8%, while exports to the United States saw a slight decrease of 0.2%. The country recorded a trade surplus of approximately $1.8 billion for this period.

The Korea Development Institute (KDI) has upgraded its economic outlook, noting an expanding recovery centered on semiconductors, facility investment, and durable goods consumption. However, challenges remain, including sluggish employment growth and persistent core inflation pressures.