Semiconductor Boom Pushes South Korean Exports Toward $1 Trillion

South Korea is poised to achieve a historic export milestone of $1 trillion, with semiconductor shipments playing a pivotal role in this surge. Preliminary data from the Korea Customs Service indicates exports reached $33.5 billion in the first 10 days of November, a staggering 111.9% increase compared to the same period last year.

This marks the highest figure ever recorded for November's initial ten days and the second-highest for any comparable period, trailing only September's $35.1 billion. Despite a slight increase in working days, average daily exports rose to $4.46 billion, a remarkable 97.7% jump year-on-year. Semiconductors alone contributed nearly half of the country's exports during this period, with shipments surging 331.2% year-on-year to a record $16.6 billion, representing a 25.3 percentage point increase in their share of total exports.

This surge is primarily fueled by the global artificial intelligence boom, which has intensified demand for high-performance memory products and driven up semiconductor prices. Other sectors also benefited, with exports of computer peripherals surging 237.7% and petroleum products increasing 100.7%. However, passenger vehicle exports contracted by 4.3%, underscoring the divergent performance of semiconductor-related industries versus traditional export sectors.

Major trading partners saw significant boosts, with China, the United States, Vietnam, Taiwan, and the European Union all experiencing substantial export growth. Imports rose at a slower pace, growing by 45.0% year-on-year to $24.7 billion. The trade surplus widened to $8.8 billion, the largest ever recorded for the first 10 days of November.

Cumulative exports now total $963.7 billion through November 10, and the Korea Customs Service projects the country will cross the $1 trillion mark around November 20, barring any significant deviations. This achievement, following a series of record-breaking exports in recent months, underscores the semiconductor industry's growing dominance in South Korea's export sector, propelled by escalating global AI investment and the rising demand for advanced memory products.