Demand for AI chips fuels 83.5% surge in South Korean exports

South Korea's exports surged by an unprecedented 83.5% in September, hitting a record monthly high of US$120.94 billion, according to data released on October 1. This surge was primarily driven by increased global demand for artificial intelligence (AI) chips, with the country being home to two major chip manufacturers: Samsung Electronics and SK hynix.

The export numbers represent a staggering 262% increase year-on-year, with chip exports alone reaching US$60.3 billion, up 262% from the previous year. This boom in chip exports is attributed to growing memory demand and continuing price increases.

The country's commitment to supporting its tech industries is clear, with the presidential office reporting significant agreements worth US$950 billion with US tech firms, including Nvidia. Computer exports also experienced a dramatic 435.3% rise, reaching US$7 billion, fueled by the proliferation of AI and sustained demand for AI infrastructure.

Trade Minister Kim Jung-kwan hailed the new record as a testament to the "strength of our industries and companies," forecasting annual exports to reach an impressive US$1 trillion. However, he cautioned that rising global protectionism and tensions in the Middle East could pose significant risks, which the government plans to mitigate preemptively throughout the fourth quarter.