South Korea exports nearly double in October, strongest growth since 1974

South Korea's exports skyrocketed by 93.7% in October, the quickest growth in over half a century, according to government figures released on Sunday. Driven by a surge in semiconductor shipments and heightened demand for artificial intelligence technologies, the nation's total exports reached $115.28 billion, surpassing market expectations of a 93.2% increase. This marked the fastest export expansion since January 1974, as reported by the trade ministry.

The trade ministry cited several factors contributing to this remarkable growth. Semiconductor exports alone rose by an astonishing 259.4% year-on-year, propelled by elevated prices and high shipment volumes. The rise was attributed to major global technology firms investing in computing infrastructure to secure a leadership position in artificial intelligence. Computer exports also experienced an even more dramatic increase of 496.6%, as demand for servers supporting AI services continued to soar.

The figures underscore the pivotal role of AI-related technology spending in bolstering South Korea's export performance, with semiconductor manufacturers reaping the benefits from expanding data center investments. Moreover, the trade ministry highlighted favorable calendar effects, as the Chuseok holiday resulted in more working days during October compared to the previous year, thereby amplifying the annual growth rate.

While imports also surged by 36% year-over-year to $72.78 billion, a significant 26% increase from September, the trade surplus narrowed to $42.50 billion from the previous month's record $49.97 billion. This narrowing occurred due to the accelerated growth in imports, although export revenues remained considerably higher than the country's monthly import bill.