South Korea's exports surged nearly 70% year-on-year in August, surpassing $90 billion for the third consecutive month. The record semiconductor exports played a significant role, alongside strong performances in wireless communication devices, computers, and petroleum products. Cumulative exports from January to August approached $700 billion, representing 98% of last year's total exports.
According to the Ministry of Trade, Industry and Energy and the Korea Customs Service, the total exports for August reached $98.255 billion, marking a 68.7% increase from the previous year. This marks the 15th consecutive month of growth, with average daily exports rising 72.5% year-on-year to $4.47 billion.
The dramatic increase in semiconductor exports, which more than doubled from a year ago, was a key factor. Last month, semiconductor exports reached $46.65 billion, a staggering 209.0% increase year-on-year, exceeding $40 billion for three consecutive months and setting a new record. The sustained demand for artificial intelligence (AI) infrastructure, driven by investments from hyperscalers like Google and Amazon, along with rising fixed prices for memory, contributed significantly to this growth.
Exports of other items also rose by 20%. Computer exports surged 419.5% year-on-year to $6.24 billion, driven by rising prices of NAND, a key component for enterprise SSDs. This also marked the highest monthly performance on record. Wireless communication device exports increased by 21.2% to $1.88 billion due to higher sales of new products.
High export prices due to rising oil prices continued to boost petroleum product exports, which increased by 65.3% to $6.84 billion, while petrochemical exports rose by 12.2% to $3.86 billion. Exports of secondary batteries also grew by 24.0% to $600 million, supported by recovering prices and increased orders for electric vehicles and energy storage systems (ESS).
Despite a decrease in steel exports due to the European Union's introduction of a low-tariff quota system, steel exports rose by 7.9% to $2.11 billion, driven by the expansion of AI data center construction in the U.S. General machinery exports increased by 1.8% due to tariff reductions on some items. The biohealth sector recorded its highest August performance at $1.41 billion, while cosmetics ($1.31 billion, 52.1%) and agricultural and fishery products ($980 million, 1.5%) also achieved record highs for August.
In contrast, mobility exports, including automobiles, faced a decline. Automobile exports fell by 29.8% year-on-year to $3.85 billion, affected by seasonal shifts in major manufacturers' summer vacations and production disruptions due to partial strikes. Ship exports also dropped by 45.9% due to reduced shipments to India, while auto parts exports decreased by 10%.
Regionally, exports to China surged by 119.3% to $24.1 billion. Despite sluggish performance in petrochemicals, wireless communication devices, and displays, semiconductor exports tripled, and general machinery exports increased by 33%. Exports to the U.S. also rose by 89.3% to $16.5 billion, driven by a 300% increase in semiconductor exports and a 1,040% increase in computer exports, along with strong performances in steel and petroleum products.
By the end of August, cumulative exports reached $693.318 billion, a 52.8% increase compared to the previous year, representing 97.7% of last year's total exports of $709.47 billion. The annual export target of $1 trillion is now within reach.
Imports rose by 22.5% to $63.570 billion. Energy imports increased by 15.3% to $12.68 billion, while non-energy imports rose by 24.4% to $50.83 billion. Although crude oil import volumes decreased by 3%, the import price surged by 26%, with significant increases in imports of semiconductor equipment (117.3%) and non-ferrous metals (27.6%).
As a result, the trade surplus for August reached $34.748 billion, a $28.345 billion increase from the previous year. South Korea's trade surplus has exceeded $30 billion for three consecutive months since June. The cumulative surplus from January to August stands at $20.257 billion, an increase of $16.217 billion from the previous year.
The government reports that the strong performance in semiconductor exports is expanding the export base, with growth in other sectors as well. However, rising protectionism in major countries poses a potential risk.
Kim Jeong-kwan, Minister of Trade, Industry and Energy, stated, "The uncertainty in the business environment is higher than ever due to the strengthening of protectionism in major countries, such as the U.S. tariff policy and the EU's TRQ, as well as the restructuring of global supply chains and the situation in the Middle East. The government will not be complacent with the current export boom and will closely monitor the impact of changes in the trade environment on our companies' exports."
* This article has been translated by AI.
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