S. Korea Posts Unprecedented Surge in September Exports

(MENAFN) South Korea’s exports soared to an unprecedented high last month, fueled by strong global demand for domestically produced semiconductors, automobiles, and ships, government figures revealed Wednesday.

According to the Ministry of Trade, Industry and Energy, exports—constituting roughly half of the country’s export-reliant economy—increased 12.7% year-on-year to $65.95 billion in September, marking a continued rise since June. This figure surpassed the previous record of $63.8 billion set in March 2022. Despite a 6.1% decline in daily average exports to $2.75 billion due to more working days, September recorded the second-highest export daily average for the month.

Imports also climbed 8.2% to $56.40 billion, resulting in a trade surplus of $9.56 billion. The trade balance has remained positive for eight straight months since February.

Among South Korea’s top 15 export categories, 10 saw growth in shipments.

Semiconductor exports surged 22.0% year-on-year to a new peak of $16.61 billion in September. This jump was driven by strong demand for advanced chips, including double data rate 5 (DDR5) and high bandwidth memory (HBM) products essential for generative artificial intelligence (AI) chipsets, alongside higher fixed prices for memory chips.

Automotive exports rose 16.8% to $6.40 billion, continuing a four-month upward trend supported by robust demand for eco-friendly vehicles.

Ship exports expanded 21.9% to $2.89 billion, marking seven consecutive months of growth amid strong orders for high-value-added vessels.

Machinery shipments rebounded 10.3% to $4.20 billion, buoyed by increased demand from Southeast Asia and the Middle East.

Exports of oil products increased 3.7% to $4.15 billion, breaking a three-month slump thanks to rising prices. Gasoline and diesel prices rose 1.4% and 5.6% respectively compared to September last year.

Conversely, petrochemical exports slipped 2.8% to $3.71 billion, hampered by a global oversupply and lower crude oil costs. The Asian benchmark Dubai crude averaged $69.4 per barrel in August, down 10.6% from a year earlier.

Demand for display panels edged up 0.9% to $1.75 billion, although exports of mobile device and computer panels fell to $1.75 billion and $1.31 billion respectively.

Auto parts exports grew 6.0% to $1.92 billion, while steel product shipments dropped 4.2% to $2.63 billion, affected by U.S. protectionist policies.

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