South Korea Breaks $700 Billion Export Barrier, Led by AI‑Fuelled Chip Surge

Updated 2026-01-01 02:15:44+00:00 (14 articles)

Record $709.7 B Export Volume Marks Global Milestone South Korea’s total exports reached a historic US$709.7 billion in 2025, a 3.8 % rise from the previous year and the first time the nation crossed the $700 billion threshold, placing it sixth worldwide behind the United States, Germany, China, Japan and the Netherlands [1][3]. The surge was driven by strong performance across multiple sectors, with December alone seeing outbound shipments climb 13.4 % year‑on‑year to US$69.6 billion [1]. The milestone was confirmed by customs data at 1:03 p.m. on 29 December, underscoring the rapid pace of growth in the final quarter [3].

Semiconductors Supply 24% Share, Memory Chips Hit $173.4 B Semiconductors accounted for roughly a quarter of total exports, contributing 24 % of the value and anchoring the export boom [2]. Memory‑chip shipments set a record at US$173.4 billion, buoyed by higher average prices and sustained AI data‑center demand, including premium high‑bandwidth memory products [1][2][4]. Samsung Electronics and SK Hynix led the surge, with analysts expecting the AI‑driven chip cycle to persist into 2026 [2][4].

Product and Market Diversification Offsets US‑China Demand Weakness Exports of automobiles, ships, bio‑health products, cosmetics, food and cultural content all posted new highs, helping dilute reliance on traditional electronics [1][2][3]. While shipments to the United States fell 3.8 % to US$122.9 billion and to China slipped 1.7 % to US$130.8 billion, sales to ASEAN (+7.4 %), the EU (+3 %) and CIS (+18.6 %) rose sharply, reflecting a deliberate market‑diversification strategy [1]. Small‑ and medium‑sized enterprises also achieved record export volumes through September, expanding the export base beyond large conglomerates [3].

Trade Surplus Grows to $78 B; Policy Boosts Future Competitiveness Imports edged down marginally to US$631.7 billion, widening the trade surplus to US$78 billion—the largest since 2017—highlighting the resilience of the external sector [1]. The government pledged a record 275 trillion won in trade‑insurance support and AI‑focused manufacturing reforms to keep exports above $700 billion for a second consecutive year [1]. The Bank of Korea raised its 2026 growth outlook to 1.8 % on the back of the semiconductor upturn, though economists warned of FX volatility and intensified competition from China [4].