As booming global demand for artificial intelligence (AI) chips fuels export growth, South Korea’s exports have recorded $709.4 billion boost so far this year, surpassing the country’s total for all of last year.
The record suggests South Korea is performing above expectations though its heavy reliance on semiconductors and the decline in car exports highlight vulnerabilities beneath the headline growth.
According to the Korea Customs Service, the figure has already exceeded the $709.3 billion recorded in 2025, marking a second consecutive annual export record.
South Korea is now on course to cross the $1 trillion annual export milestone by early December, becoming only the fourth country after the United States, China and Germany to reach the landmark, the customs agency said.
The agency said exports had maintained strong momentum despite growing uncertainties caused by protectionist trade policies, global supply-chain restructuring and tensions in the Middle East.
CHIPS DRIVE EXPORT BOOM
Semiconductors have emerged as the major driver of the export surge. From January to August, semiconductor exports jumped 169.6 per cent year-on-year to $281 billion, accounting for about 41 per cent of South Korea’s total exports.
South Korea is home to global memory-chip giants Samsung Electronics and SK Hynix, which have benefited from rising chip prices amid increased demand linked to the global AI investment boom.
However, the country’s second-largest export category, passenger cars, recorded a 4 per cent decline in overseas shipments during the first eight months of the year.
Exports to China, South Korea’s largest trading partner, surged 76 per cent, while shipments to the United States increased by 57 per cent over the same period.
The figures underscore the growing importance of the semiconductor industry to South Korea’s export-driven economy as global demand for AI-related technology continues to expand
