Korea’s exports surge toward $1T milestone

South Korea’s exports nearly doubled in October, rising 93.7% from a year earlier to about $115.3 billion and marking the sharpest increase since January 1974. The monthly total was the second-highest on record, reflecting both strong external demand and favorable calendar effects from more working days.

The robust October outcome lifted cumulative exports for January through October to $930 billion, an increase of 60.6% from a year earlier. With $70 billion remaining to reach $1 trillion, authorities indicated that South Korea is all but certain to record its first-ever $1 trillion in annual exports in November.

Semiconductors were the main driver of the surge. Chip exports rose about 259% from a year earlier to $56.4 billion, surpassing $50 billion for the second straight month and underscoring the sector’s role as a key pillar of Asia’s fourth-largest economy. Strong prices and volumes were supported by continued facility investment by global technology firms competing in artificial intelligence infrastructure.

Computer exports climbed 496.6% on increased server demand for AI services, while exports of electrical equipment such as transformers, wires and cables rose 74.0% to $1.99 billion, a monthly record. Exports excluding semiconductors also advanced 34%, and 18 of the top 20 export categories posted gains, with ships and household goods the exceptions.

Petroleum products and petrochemicals contributed as well, with export values up 80.0% and 27.5%, respectively, helped by higher prices tied to rising global oil prices even as shipment volumes declined. Cosmetics, agricultural and fisheries products, and bio-health items all recorded their highest October export levels.

Export growth was geographically broad, with increases in seven of nine major markets. Shipments to China rose 133.6% to $26.98 billion, driven by semiconductors and wireless communications equipment, and exports to China stayed above $20 billion for the fifth straight month.

Exports to the United States surged 185.8% to $24.9 billion. Demand for AI-related products such as semiconductors, computers and electrical equipment supported this increase, alongside higher exports of autos and steel. Auto exports overall rose 18.1% to $6.55 billion, the highest figure for any October, aided by more working days and strong hybrid vehicle shipments.

Imports into South Korea grew 36.0% in October to $72.78 billion, a significant increase but far below the pace of export growth. As a result, the monthly trade balance showed a surplus of $42.5 billion, remaining above $40 billion for a second consecutive month, though narrower than the record surplus posted in September.

For the first ten months of the year, the cumulative trade surplus reached $294.9 billion, reinforcing the contribution of external demand to South Korea’s economy. Average daily exports, adjusted for working days, climbed 76% from a year earlier to $5.24 billion and stayed above $5 billion for a second consecutive month, highlighting the underlying strength of outbound shipments beyond calendar effects.