South Korea sees July export volume grow 5.9 percent on strong chip demand

Cars and containers ready to be shipped at Pyeongtaek Port in Gyeonggi Province Yonhap — Cars and containers ready to be shipped at Pyeongtaek Port in Gyeonggi Province/ Yonhap

SEOUL, August 1 (AJP) - South Korea's exports rose 5.9 percent in July from a year earlier to $60.82 billion, marking the second consecutive month of growth despite concerns over impending U.S. tariffs, trade ministry data showed Friday.

Semiconductors drove the export surge, posting a 31.6 percent year-on-year increase to $14.71 billion, recording the highest July performance ever, aided by strong demand for high-value memory chips such as high bandwidth memory chips and price recovery.

The chip sector accounted for 24.2 percent of total exports, nearly a quarter of South Korea's overseas shipments during the month.

Automotive exports also performed well, rising 8.8 percent despite reduced shipments to the United States due to the 25 percent tariffs, as increased sales to the European Union, Commonwealth of Independent States and Latin America offset the decline.

Shipbuilding exports more than doubled with a 107.6 percent increase, driven by strong demand for liquefied natural gas carriers.

The regional export landscape showed notable changes, with exports to the United States ranking third at $10.33 billion, tailing behind China at $11.05 billion and ASEAN countries at $10.91 billion.

Some analysts suggest the July growth may reflect "front-loading" effects, as companies rushed to export key products before the August implementation of higher U.S. tariffs.

Beyond semiconductors, automobiles, and ships, many sectors struggled, including secondary battery exports falling more than 20 percent due to declining mineral prices and overseas production shifts.

Steel exports dropped 2.9 percent while auto parts fell 7.2 percent, both affected by higher U.S. tariffs on these products.

From August, the United States will implement reciprocal tariffs ranging from 10 percent to 15 percent on major Korean products including semiconductors, still lower than the initially proposed 25 percent rates.

"Despite very high external uncertainties surrounding our exports ahead of the U.S. tariff implementation on August 1, our companies made all-out efforts in export activities, continuing the positive export trend for two consecutive months since June," Minister of Trade, Industry and Energy Kim Jung-kwan said in a press release.

Kim Dong-young davekim0807@ajupress.com