South Korean exports nearly doubled in October on AI investment boom

South Korea's exports nearly doubled in October, marking the sharpest increase in over five decades, according to government data. The surge in international sales was driven by robust demand for AI-related technology, particularly semiconductor shipments, which soared 259.4% in October to reach $56.44 billion. This marked a 93.7% increase compared to October 2022, exceeding economists' median forecast of a 93.2% rise.

The impressive growth was fueled by the country's effective utilization of more working days than the previous year, due to a shift in the Chuseok holiday schedule. The strong performance extended beyond October, with South Korea's exports for the first ten months of the year totaling $930 billion. This projected annual export figure would make South Korea the fourth nation globally to achieve the $1 trillion milestone, following the United States, China, and Germany.

AI investment played a significant role in the economic boom, with chipmakers Samsung Electronics and SK Hynix reporting record profits. Computer sales also experienced a remarkable 496.6% increase, driven by the growing demand for server services catering to AI applications. Notably, shipments to China surged by 133.6%, while those to the United States grew by 185.8%, and exports to Europe increased by 56.4%, while those to Southeast Asia rose by 128.0%.

Despite the export surge, South Korea's imports also saw a significant rise, increasing by 36.0% to $72.78 billion. This surge was attributed to higher crude oil prices, as well as the heightened demand for semiconductor manufacturing equipment and automobiles. The nation's monthly trade surplus stood at $42.50 billion, slightly narrower than the record $49.97 billion surplus reported in the previous month.