S.Korea’s exports stand firm thanks to record chip sales
Kyung-Min Kang
7 HOURS AGO
Busan port (Courtesy of News1 Korea) South Korea’s exports extended the growth streak for the 12th month in a row in September mainly driven by record-high semiconductor shipments, brisk sales of ships and a recovery in car demand, brightening the country's export outlook for the rest of this year.
Exports from Asia’s No. 4 economy added 7.5% from the same month last year to $58.77 billion in September, expanding for a 12th consecutive month after an 11.4% gain in August, according to preliminary data released by Korea’s Ministry of Trade, Industry and Energy on Tuesday.
This was also the country’s largest outbound shipment for September with record-high average daily exports of $2.94 billion despite one day fewer working days than a year ago.
Imports gained 2.2% on-year to $52.12 billion, allowing the country to enjoy a trade surplus of $6.66 billion. It was the 16th consecutive surplus since June last year.
The country’s robust sales of goods overseas were mainly driven by strong global demand for Korea’s mainstay export items, especially chips, cars and vessels.
DEMAND FOR KOREAN CHIPS STAYS STRONG
Korea’s outbound shipments of semiconductors hit a record monthly high of $13.60 billion in September, up 37.1% from a year earlier and marking an 11th straight month increase, the data showed.
Demand for memory chips remained strong driven by new smartphone releases such as Apple Inc.’s new iPhone series, the addition of new AI servers and the strong regular server replacement demand. As a result, memory chip prices continued rising.
Exports of memory chips stood at $8.7 billion in September, surging 61% from the same month last year.
Korean car exports also recovered with a 4.9% on-year gain to $5.50 billion, recording the highest September result after snapping the losing streak in the previous three straight months
The country's ship deliveries to overseas markets jumped 76% on-year in the month.
Korea’s outbound shipments to its key export destinations, including the world’s two biggest economies the US and China, also increased.
The country’s exports to China reached $11.7 billion, up 6.3% from a year earlier and marking the biggest shipments to the neighboring country so far this year.
Exports to the US also expanded for a 14th straight month to record $10.4 billion, the biggest for September, after adding 3.4% from a year ago.
Kia's EV plant in Gwangmyeong, South Korea (Courtesy of Kia) ROSY OUTLOOK FOR H2 EXPORTS
The latest figures are expected to ease concerns about the Korean economy and the country’s chip market, said the trade ministry.
“Signs are clear that the country’s exports will extend the growth streak in the second half from the first half of this year,” Ahn Duk-geun, Korean Minister of Trade, Industry and Energy, said on Tuesday after the trade data was released.
With the rosy outlook for the country’s exports, its main growth driver, the Korean economy is expected to grow at the anticipated pace.