South Korea Marks 8th Month Of Export Growth, Led By Semiconductor Surge

South Korea's exports have extended their on-year gains for the eighth consecutive month in May, driven by robust shipments of semiconductors, according to data released on Saturday. The Ministry of Trade, Industry and Energy reported that outbound shipments increased by 11.7 percent on-year to US$58.1 billion last month.

Imports, however, saw a 2 percent decline on-year, amounting to $53.1 billion in May. This resulted in a trade surplus of $4.96 billion, marking the highest trade surplus in 41 months and maintaining a trade surplus for 12 consecutive months.

By sector, semiconductor exports surged by 54.5 percent year-on-year to reach $11.38 billion, continuing their growth for seven straight months. The increase was attributed to the rising global demand for automotive chips and premium memory chips.

Display product exports also saw a rise of 15.8 percent over the same period, reaching $1.63 billion, the highest monthly figure for 2024. This growth was driven by the strong performance of the smartphone sector.

Car exports increased by 4.8 percent to $6.49 billion, the highest for any May, due to increased sales of premium eco-friendly cars and SUVs. Ship exports more than doubled to $2 billion owing to strong global demand for container carriers.

Other significant gainers included petroleum, electronics, petrochemical, and textile products.

Exports by Destination

Exports to China reached $11.38 billion, up 7.6 percent from a year earlier, marking the highest in 19 months. This growth was led by chips and displays.

Shipments to the United States also increased on-year for ten consecutive months, rising by 15.6 percent to $10.93 billion. The demand for high-bandwidth memory chips rose in the world's top economy following the recovery in the semiconductor industry.

Exports to Southeast Asia improved by 21.9 percent on-year in May to $10.19 billion amid rising demand for electronics in Vietnam.

Annual Performance

Despite these gains, outbound shipments decreased by 7.4 percent on-year in 2023 due to sluggish chip performance coupled with global economic uncertainties.

With inputs from WAM