S.Korea’s exports stand firm thanks to record chip sales

South Korea’s exports extended their growth streak for the 12th straight month in September mainly driven by record-high semiconductor shipments, brisk sales of ships and recovery in car demand, brightening the country's export outlook for the rest of the 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 the 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 shipments for September with record-high average daily exports of $2.94 billion despite one fewer working day 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 its 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 strong regular server replacement demand. As a result, memory chip prices continued to rise.

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 a losing streak over the previous three 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 the biggest shipments to the neighboring country this year.  

Exports to the US also expanded for a 14th straight month to reach $10.4 billion, the biggest for September, after adding 3.4% from a year ago.

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.

The Bank of Korea in August lowered its gross domestic product growth forecast for 2024 to 2.4% from an earlier estimate of 2.5%, citing weak private consumption and investments at home.

Write to Kyung-Min Kang at kkm1026@hankyung.com

Sookyung Seo edited this article.