South Korea's exports exceeded $120 billion for the first time in September, setting a new record. Cumulative exports for the third quarter surpassed $800 billion, already exceeding last year's total. The surge was driven by semiconductor exports, which surpassed $60 billion for the first time, along with strong performances in wireless communication devices, computers, and ships.
With exports outpacing imports, the trade surplus also reached a record high, exceeding $40 billion for the first time.
According to the Ministry of Trade, Industry and Energy and the Korea Customs Service, September exports totaled $120.944 billion, marking an 83.5% increase from the previous year. This marks the 16th consecutive month of growth, and it is the first time monthly exports have surpassed $120 billion.
Considering the number of working days, the average daily export was $5.63 billion, a 104.9% increase from a year earlier, also the first time it has exceeded $5 billion.
The growth in exports was led by semiconductors, which saw exports rise to $60.3 billion, a staggering 262.8% increase compared to the same month last year. This figure surpassed the previous record of $46.7 billion set in August, marking the first time semiconductor exports exceeded $60 billion.
The increase in semiconductor exports is attributed to sustained demand for memory chips, increased export volumes, and rising fixed prices. The fixed price of DDR5 16Gb chips rose from $37.5 in May to $48 in September. Semiconductors accounted for approximately 49.9% of total exports in September, effectively making it responsible for nearly half of all export revenues.
Computer exports also surged, driven by the expansion of artificial intelligence (AI) and increased demand for AI infrastructure, rising 435.3% to $7 billion. Wireless communication devices saw a 23.4% increase to $2.14 billion, boosted by sales of premium smartphones and increased component exports.
In contrast, automobile exports fell by 5.5% to $6.05 billion due to seasonal shifts around the Chuseok holiday and sluggish used car exports. However, average daily exports increased by 5.5%. Ship exports rose by 29.9% to $3.76 billion, driven by increased deliveries of LNG carriers and very large gas carriers (VLGC).
The rise in international oil prices also significantly impacted export values. Exports of petroleum products increased by 72.0% to $7.22 billion, while petrochemicals rose by 5.1% to $3.95 billion. However, export volumes for both categories decreased by 6.9% and 19.1%, respectively, indicating that much of the increase in export value was due to rising prices.
Regionally, exports increased in six of the nine major export markets. Exports to China surged by 122.7% to $26.01 billion, while exports to the United States rose by 137.0% to $24.33 billion. Exports to ASEAN countries increased by 92.6% to $21.29 billion, surpassing $20 billion for the first time. Exports to the European Union also rose by 20.9%, continuing a positive trend for ten consecutive months.
Conversely, exports to the Middle East fell by 14.1% to $1.6 billion due to difficulties navigating the Strait of Hormuz.
Cumulative exports for the third quarter reached $814.531 billion, a 56.8% increase from the previous year, already surpassing last year's total exports of $709.4 billion. This raises the likelihood of achieving annual exports of over $1 trillion.
Imports rose by 19.7% to $71.092 billion, with energy imports increasing by 38.0% to $12.96 billion and non-energy imports rising by 23.6% to $58.13 billion. The volume and price of crude oil imports increased by 2.0% and 35.7%, respectively, while imports of semiconductor equipment (50.8%) and wireless communication devices (27.3%) also rose. Cumulative imports from January to September reached $562.056 billion, a 19.7% increase from the previous year.
As a result, the trade balance for September recorded a surplus of $49.852 billion, an increase of $40.367 billion, marking the first time the trade surplus has exceeded $40 billion. The cumulative trade surplus from January to September stands at $252.475 billion.
Kim Jeong-kwan, Minister of Trade, stated, "The cumulative exports from January to September have already surpassed last year's record, thanks to the hard work and efforts of our businesses competing fiercely in the global market. While we expect to achieve annual exports of $1 trillion, the strengthening of global protectionism and tensions in the Middle East remain significant variables for our exports."
He added, "The government will maintain high-level channels with trade authorities in major countries to closely monitor export regulation trends and proactively respond to unexpected external variables that could negatively impact our exports, ensuring that we maintain the momentum for export growth in the fourth quarter."
* This article has been translated by AI.
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