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

Korea's exports skyrocketed by 68.7 percent in August compared to the previous year, driven by robust growth in semiconductor shipments, according to data released on Tuesday. The total value of outbound shipments reached $98.25 billion in August, as reported by the Ministry of Trade, Industry and Resources. Meanwhile, imports surged 22.6 percent year-on-year, amounting to $63.51 billion, resulting in a substantial trade surplus of $34.75 billion.

Semiconductors, a crucial component of the world's fourth-largest economy, experienced a remarkable 209 percent increase in exports during the period, reaching $46.65 billion. This surge was primarily fueled by significant technology firms, commonly referred to as hyperscalers, such as Google and Amazon, increasing their investments in artificial intelligence (AI) infrastructure.

Semiconductor exports continued to exceed $40 billion for three consecutive months. Other notable increases included petroleum products, which climbed 65.3 percent to $6.84 billion, and petrochemical products, which grew 12.2 percent to $3.86 billion. However, automobile exports declined 29.8 percent to $3.85 billion, primarily due to fewer working days during the summer holiday season and production delays stemming from partial strikes over wage increases. Exports to China witnessed an impressive surge of 119.3 percent, totaling $24 billion.