South Korea Breaks $700 Billion Export Barrier, Chips Power Growth and Samsung Forecasts Record Profit
Updated (3 articles)
Record $700 Billion Export Milestone Places Korea Sixth Globally South Korea’s total exports crossed the $700 billion threshold for the first time, briefly exceeding the mark on 1 January 2026 and confirming the earlier 29 December 2025 report. The achievement ranks the nation sixth worldwide after the United States, Germany, China, Japan and the Netherlands [1][2]. The milestone reflects a sustained upward trajectory since the $600 billion level reached in 2018.
Semiconductors Account for One‑Quarter of Export Value Semiconductors comprised roughly 24 percent of total shipments, driven by heightened demand linked to artificial‑intelligence applications [1][2]. Samsung Electronics and SK Hynix dominate memory‑chip production, anchoring the sector’s resilience. Analysts expect the robust semiconductor cycle to continue into the new year, underpinning export growth.
Export Base Expands Into Autos, Culture, and SMEs Automobile exports remained strong, with hybrids and diversified market access offsetting tariff pressures in Europe [1]. Cultural content, cosmetics, and food products emerged as new growth engines, broadening the export portfolio beyond electronics [1]. Small and medium‑sized enterprises recorded historic export volumes through September, contributing to the overall surge [2].
Samsung Projects Record Q4 Profit Amid Chip Strength Samsung Electronics projected a fourth‑quarter operating profit exceeding 20 trillion won, citing continued chip demand [1]. The company’s outlook reinforces Korea’s status as a memory‑chip powerhouse. Nonetheless, analysts warn of competitive challenges from China, Japan and Taiwan, while the government considers regulatory reforms such as the Yellow Envelope Act to sustain momentum [1][2].
Sources
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Yonhap: South Korea tops $700 billion in annual exports as chips lead growth: Highlights the $700 billion milestone, 24 % semiconductor share, auto and cultural diversification, Samsung’s record‑profit forecast, and regulatory headwinds.
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Yonhap: South Korea's annual exports surpass $700 billion for first time: Emphasizes the timing of the milestone, Korea’s sixth‑place global ranking, semiconductor‑driven surge, regional export shifts, SME record highs, and government plans for reforms and foreign‑investment targets.
Timeline
2018 – South Korea reaches $600 billion in annual exports, establishing a benchmark that later underpins its record‑setting trade performance. This milestone marks the start of a long‑running shift in global trade for the country. [1]
June 2025 – President Lee Jae Myung declares, “We will sweep away unnecessary regulations to back Korea’s exporters,” signalling strong governmental backing for export‑driven growth amid rising global competition. [1]
Dec 3, 2025 – The Ministry of Trade, Industry and Resources projects that 2025 exports will exceed $700 billion, driven by semiconductors, automobiles, ships and bio‑health products; it also reports a record $87.1 billion in SME exports, highlighting the sector’s expanding role. [3]
Dec 29, 2025 – South Korea’s outbound shipments cross the $700 billion threshold at 1:03 p.m., making it the sixth nation worldwide to achieve this level. Exports diversify away from the U.S. and China, with growth in ASEAN, the EU and Latin America. [2]
Jan 1, 2026 – South Korea tops $700 billion in annual exports for the first time, with semiconductors comprising 24 % of shipments and Samsung Electronics stating, “We project a record fourth‑quarter operating profit above 20 trillion won.” Analysts cite sustained AI‑driven chip demand and warn of competitive pressure from China, Japan and Taiwan. [1]