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

SEOUL: South Korea's exports surged by 83.5% in September to an all-time high, the official figures revealed on Thursday, driven by a surge in global demand for chips fueled by the rapid growth of artificial intelligence. The nation is home to prominent tech giants, Samsung Electronics and SK hynix, both major memory-chip producers and significant suppliers to the rapidly expanding global AI sector.

Overseas shipments attained a record-breaking US$120.94 billion in September, nearly double the US$65.95 billion recorded in the previous year, according to the data. Chip exports hit a record US$60.3 billion, a staggering 262% increase year-on-year, as rising memory demand boosted shipments and prices continued to rise. The presidential office disclosed in July that Samsung and SK hynix would supply US-based tech firms, including Nvidia, under agreements valued at US$950 billion.

Computer exports surged 435.3% to US$7 billion, thanks to the widespread adoption of agentic AI and persistent demand for AI infrastructure, the trade ministry reported. Trade Minister Kim Jung-kwan expressed his delight at the new record, stating that it underscored the strength of the country's industries and businesses. Kim further anticipated that annual exports could reach US$1 trillion, but cautioned that rising global protectionism and tensions in the Middle East remained significant risks.

The government pledged to take proactive measures to counteract external shocks and maintain export momentum throughout the fourth quarter, Kim added.