South Korea’s Q1 Exports Hit Record as Semiconductor Shipments Jump 139%

South Korea posted its strongest first-quarter exports on record, helped by an artificial intelligence investment boom and a rebound in the semiconductor cycle. But the surge was heavily concentrated in chips — especially memory — raising concerns about the stability of the country’s export structure.

The Ministry of Trade, Industry and Energy said Tuesday that first-quarter exports rose 37.8% from a year earlier to $219.9 billion, the highest ever for the period. The ministry cited expanding investment in AI servers and strong semiconductor demand.

Semiconductor exports jumped 139% to $78.5 billion, underscoring the long-running risk of overreliance on a narrow set of products.

Within semiconductors, growth diverged sharply between memory and system chips. With rising demand for high-bandwidth memory, exports of DRAM and NAND surged 249.1% and 377.5%, respectively. But system semiconductors, including foundry output, grew 13.5%.

Across the broader export basket, the chip dominance was even clearer. Exports increased in 13 of the top 20 items, but semiconductors accounted for 35.7% of total exports. Exports excluding semiconductors rose 11.6%, less than half the overall growth rate.

Other key industries slowed or slipped. Auto exports totaled $17.2 billion in the first quarter, down 0.3% from a year earlier. Truck exports rose, but shipments of passenger cars and vans fell. Passenger-car exports declined 2.2% to $16.3 billion, while van exports plunged 31.7%.

In batteries, overall secondary-battery exports increased on strong lithium-ion battery shipments, but exports of cathode materials fell 5.5%.

Steel and textiles were also weak. Steel exports were tallied as down 18.1% from the previous standard after some items were reclassified as other steel and metal products during an MTI revision. Textile exports slipped 0.6% due to weakness in fabrics and raw materials, though finished textile products held up on demand for K-fashion.

Markets are increasingly wary that heavy dependence on a memory-led semiconductor supercycle could amplify volatility. The article cited uncertainty over U.S.-driven tariffs and expanding oil and supply-chain risks tied to a prolonged Middle East war as factors that could turn a concentrated export structure into a liability.

Domestic risks are also in focus, including a threatened general strike by Samsung Electronics’ union. If production disruptions hit semiconductor output, the broader economy could face a significant shock. The Korea Development Institute has estimated that a 10% drop in exports due to semiconductor production disruptions would cut gross domestic product by 0.78%.

The government said it is watching the risks closely. A ministry official said semiconductors are taking on the characteristics of a core industry and are closely linked to IT devices and supply chains, adding that the direction of the Middle East war is the biggest variable and that a negative scenario could hurt overall exports.