Korea's August exports jump 68.7% to $98.25 billion on strong chip demand

Korea's exports experienced a significant surge of 68.7 percent in August compared to the previous year, driven by robust semiconductor shipments, according to data released on Tuesday. The total value of outbound shipments reached $98.25 billion, as reported by the Ministry of Trade, Industry and Resources. Import volumes also increased by 22.6 percent year-on-year to $63.51 billion, resulting in a substantial trade surplus of $34.75 billion.

Within these exports, semiconductor products emerged as a standout sector, witnessing an astonishing 209 percent growth during the period, totaling $46.65 billion. This surge was primarily fueled by elevated spending on artificial intelligence (AI) infrastructure by major technology firms, colloquially referred to as hyperscalers, such as Google and Amazon.

Semiconductor exports had surpassed the $40 billion mark for the third consecutive month. Additionally, petroleum product exports experienced a notable uptick of 65.3 percent to $6.84 billion, while petrochemical exports rose by 12.2 percent to $3.86 billion. However, automobile exports witnessed a decline of 29.8 percent to $3.85 billion, primarily due to fewer working days during the summer holiday season and production setbacks caused by partial strikes related to wage negotiations. Exports to China saw a remarkable 119.3 percent increase, amounting to $24 billion.