Korea on track to become fourth country to hit $1 trillion in annual exports

South Korea's exports neared the US$100 billion mark in August, propelled by record semiconductor shipments valued at nearly US$46.7 billion. Cumulative exports through August totaled US$693.3 billion, indicating potential surpassing of the US$1 trillion annual export milestone for the first time. If this trajectory persists, South Korea could become the fourth country after Germany, the United States, and China to achieve this milestone.

The Ministry of Trade, Industry and Resources expects the US$1 trillion target remains attainable due to a concentration of exports in the second half of the year. The ministry reported a 68.7% increase in August exports to US$98.25 billion, marking the third-highest monthly figure on record after June and July. Exports grew in seven of Korea's nine major markets, with notable increases to China (119% year-on-year), ASEAN countries (75%), the US (89.3%), and the European Union (14.6%).

However, exports to the Middle East fell by 15%, and shipments to the Commonwealth of Independent States declined by 25%. Semiconductor exports, driven by triple-digit growth, reached a record US$46.65 billion in August, up 209% from US$15.1 billion a year earlier. This surge can be attributed to rising prices and excess demand for memory chips, particularly DRAM DDR4 8Gb chips, whose average fixed price surged from US$5.30 in Q3 2022 to US$25 last month.

The trade surplus widened to US$34.75 billion, up 162.2% from the same period last year, with imports rising by 22.5% year-on-year to US$63.51 billion. Trade Minister Kim Jung-kwan noted the strong performance in semiconductors, coupled with 20% growth in non-semiconductor items, as a positive sign of a broadening export base for South Korea.

He also emphasized the ministry's commitment to closely monitoring the impact of global trade changes, including US tariff policies and restructuring of global supply chains.