South Korea exports nearly double on AI investment boom

South Korea's exports nearly doubled in October, marking the largest year-over-year increase in over 50 years, according to government data released on Sunday. The surge, fueled by a surge in global demand for AI-related investments, propelled shipments of the nation's chips to an all-time high of $115.28 billion. This figure represents a remarkable 93.7 percent increase from October 2022, slightly surpassing the 93.2 percent growth rate predicted by a Reuters poll of economists.

The robust growth was further bolstered by South Korea benefiting from an additional 14 working days compared to October 2022, thanks to the shift in Chuseok holiday timing.

The remarkable export boom outpaced September's growth rate of 83.7 percent and marked the strongest increase since January 1974. This surge in exports was primarily driven by the thriving semiconductor industry, with key chip manufacturers Samsung Electronics and SK Hynix reporting substantial profit surges. As exports continued their robust growth trajectory, reaching over $110 billion in October, trade minister Kim Jung-kwan expressed optimism, predicting that annual exports could reach a staggering $1 trillion within November.