S. Korea's monthly exports hit 2nd highest ever on strong chip shipments

Seoul, Aug 1 (AHN) South Korea's monthly exports soared to the second highest ever by moving up nearly 63 per cent in July from a year earlier, data showed on Saturday, amid solid global demand for memory chips.

Outbound shipments came to $98.89 billion in July, according to the Ministry of Trade, Industry and Resources. It was slightly below the all-time high record of $102.2 billion posted in June.

Imports rose 26.5 percent on-year to $68.56 billion, resulting in a trade surplus of $30.32 billion, reports Yonhap news agency.

By sector, exports of semiconductors, the backbone of Asia's fourth-largest economy, shot up 179 percent over the period to $41 billion as global prices for memory products remained high amid the strong demand from artificial intelligence (AI) data centres.

"The popularisation of AI technology, with the industry entering the era of agentic AI, continued to drive demand for memory chips used in servers," the industry ministry said. "Prices for both DRAM and NAND also continued to rise."

The figure topped the $40 billion mark for two consecutive months. South Korea's total exports, excluding the crucial semiconductor sector, rose 26 percent on-year in July.

Exports of automobiles also rose 7 percent to $6.2 billion on the back of strong global demand for hybrid and other eco-friendly models.

Outbound shipments of petroleum products jumped 34.1 percent to $5.68 billion, while those of petrochemical products gained 10.3 percent to $4.18 billion.

"Exports of petroleum products decreased in volume following the government's efforts to stabilise domestic supply, but uncertainties in the Middle East led to higher oil prices, resulting in gains in export value," the ministry said.

The industry ministry said exports of mobile devices rose 51 percent to $1.81 billion, as premium smartphones, such as the Galaxy S26 lineup, maintained solid sales despite soaring chip-driven production costs.

Outbound shipments of home appliances, on the other hand, shed 4.1 percent to $600 million, becoming the only declining category among the country's top 20 export items, amid sluggish demand from the United States following a slump in the housing market.

By destination, exports to China nearly doubled to $21.68 billion on the back of strong shipments of chips, nonferrous metal products and petroleum goods.

Exports to the U.S. surged 68.7 percent to $17.4 billion, driven by AI data centre investment projects rolled out by major high-tech companies, the data showed.

The monthly report also showed exports to Southeast Asian countries rose 73.7 percent to $18.8 billion, driven by strong shipments of semiconductors, displays and ships. Exports to the European Union gained 55.7 percent to $9.38 billion on the back of robust shipments across a broad range of products.

"Amid the strong performance of semiconductors, 19 of the country's 20 major export categories posted gains," Industry Minister Kim Jung-kwan said in a release, noting South Korea has successfully diversified its export portfolio.

—AHN

na/