(EDITORIAL from The Korea Times on Nov. 3)
Korea, Asia's export powerhouse, is poised to exceed US$1 trillion in annual exp...
Korea is set to become the fourth country to surpass the $1 trillion annual export mark this year, according to the Ministry of Trade, Industry and Resources. October's exports reached $115.3 billion, a 93.7% increase from the previous year, bringing the total to $930 billion for the first ten months. President Lee Jae Myung expressed gratitude to businesses and workers for their efforts, highlighting the country's industrialization achievements.
The export figures boosted Korea's GDP growth to 1% in the third quarter, surpassing the Bank of Korea's forecast and exceeding the 0.6% growth in the second quarter. However, this momentary excitement over the $1 trillion export figure may be short-lived, as businesses and policymakers recognize the pressure from Seoul's export structure.
Chip products, including high-bandwidth memory and DRAM, account for about 50% of the export surge. Other leading exports, such as automobiles, petrochemicals, and K-cosmetics, also increased in October. While the chip rally is fueled by the AI investment boom, concerns about the boom's peak have been persistent. Stock market volatility, combined with Middle East tensions and concerns over the AI and semiconductor peak, pose major challenges for export-oriented Korea.
Policymakers must now work on a sustainable and innovative economic model, utilizing the available resources and experience from past growth periods.
Written by urgent.news from Yonhap News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
