South Korea’s export boom seen sustained in August on strong chip demand: Reutser Poll

South Korean exports are expected to maintain their strong growth momentum in August, according to a Reuters poll of economists. The August figures are projected to mark the 15th consecutive month of export gains for the Asian country, which serves as a key indicator for global trade. A median estimate suggests that South Korean exports grew by 62.6% in August compared to the previous year, mirroring the 63% surge observed in July.

The robust export performance is primarily attributed to the surging global demand for artificial intelligence (AI) chips. Memory chip manufacturers Samsung Electronics and SK Hynix are reaping the benefits of this trend, as climbing prices for these essential components fuel their expansion. IT exports, with a focus on semiconductors, are anticipated to sustain their high export growth trajectory.

However, automobile exports may experience a slight deceleration due to factors such as labor strikes within the automotive sector, according to Park Sang-hyun, an economist at iM Investment and Securities.

Looking ahead, while the overall global manufacturing strength is expected to support this semiconductor-led export growth, South Korea's year-over-year export growth rate is projected to gradually decelerate due to base effects. The poll forecasts that South Korea's imports will increase by 24.7% in August from a year earlier, resulting in a median trade surplus of $30.74 billion, slightly higher than the $30.40 billion surplus recorded in the previous month.

South Korea is set to release its official trade figures for August on Tuesday, September 1, at 9 a.m. local time (0000 GMT).