(2nd LD) S. Korea's Sept. exports hit record US$120.9 bln on robust chip sales

South Korea's exports in September reached a record $120.9 billion, a staggering 83.5% increase compared to the same period last year. This surge was primarily fueled by a skyrocketing 263% rise in semiconductor exports, which hit $60.3 billion. Chip shipments surpassed $60 billion for the first time ever, significantly contributing to the overall export growth. Imports surged by 26% to $71.09 billion, resulting in an unprecedented trade surplus of $49.85 billion.

Semiconductor exports were boosted by increased shipments and higher product prices, driven by rising demand for memory chips. Other notable export growth included petroleum products (72% increase), petrochemical products (5.1% increase), and cosmetics (31.4% increase), with the latter driven by rising demand in key markets like China, the U.S., and the European Union. Automobile exports, however, declined by 5.5% to $6.05 billion, impacted by fewer working days due to the Chuseok holiday and a drop in used-car exports.

China emerged as the largest export destination, with shipments climbing 123% to $26 billion, driven by strong sales of semiconductors and wireless communications equipment. China had been a key market for eight consecutive months. Exports to the U.S. surged 137% to $24.33 billion, fueled by robust demand for chips, petrochemical products, and general machinery.

Moreover, exports to Southeast Asian countries surged 92.6% to $21.29 billion, as did exports to the European Union, which grew by 20.9% to $8.65 billion, both driven by strong shipments of chips and automobiles. For the January-September period, South Korea's exports surpassed $800 billion for the first time, surpassing the country's previous annual export record of $709.3 billion.

Industry Minister Kim Jung-kwan stated that South Korea is on track to achieve $1 trillion in annual exports this year, but warned that global protectionism and Middle East tensions pose significant uncertainties for outbound shipments. The government pledged to closely monitor the impact of global trade changes on Korean companies and take preemptive measures to minimize the impact of external factors on shipments.