South Korea exports hit record high amid industrial polarization

South Korea's export performance shows significant divergence between high-tech industries and local consumer markets. In August, national exports reached a record $98.3 billion, a 68.7% increase compared to the same month last year, driven largely by the semiconductor boom fueled by artificial intelligence demand.

However, this growth highlights a ‘K-shaped’ economic polarization. While advanced industries thrive, local markets and small businesses face hardship due to rising inflation and high food prices, such as the increased cost of apples.

In the Daegu and Gyeongbuk region, exports rose 9.6% to $800 million in August. This growth was primarily driven by a 50.1% surge in chemical products. Conversely, traditional regional manufacturing sectors saw declines, with machinery and precision instruments falling 12.8%, automobiles and parts dropping 11.7%, and steel products decreasing by 7.6%.