Seoul: South Korea's exports rose 5.9 percent from a year earlier in July, driven by robust global demand for semiconductors, as revealed by government data on Friday. Outbound shipments reached a record high for the month of July, totaling US$60.8 billion, according to data compiled by the Ministry of Trade, Industry and Energy.

According to Yonhap News Agency, imports increased by 0.7 percent on-year to $54.2 billion, resulting in a trade surplus of $6.61 billion. Semiconductor exports notably surged 31.6 percent on-year to $14.71 billion, marking an all-time high for July. This growth was supported by an uptick in memory chip prices and solid demand for high-value products like high bandwidth memory (HBM) chips and DDR5.

Automobile shipments rose 8.8 percent to $5.83 billion, with strong performances in the European Union (EU), Latin America, and the Commonwealth of Independent States (CIS), including Russia. Ship exports increased by 107.6 percent on-year to $2.24 billion, marking the fifth consecutive month of growth, due to robust demand for high-value ships such as liquefied natural gas (LNG) tankers.

Conversely, exports of petroleum and petrochemical products decreased by 6.3 percent and 10.1 percent to $4.21 billion and $3.75 billion, respectively. By destination, exports to the United States increased by 1.4 percent on-year to $10.33 billion, driven by strong demand for semiconductors, wireless communications equipment, and cosmetics. Shipments to the Association of Southeast Asian Nations (ASEAN) surged 10.1 percent to $10.91 billion due to high chip demand.

Exports to EU countries expanded 8.7 percent on-year to $6.03 billion, fueled by strong exports of automobiles, ships, and petroleum products, while shipments to CIS countries spiked 21.5 percent to $1.22 billion. However, exports to China fell by 3 percent to $11.05 billion due to sluggish demand for petrochemical products and wireless communications equipment.

Industry Minister Kim Jung-kwan highlighted the benefits of a trade deal with the U.S., stating, "With the trade deal with the U.S., South Korea faces tariff rates equal to or lower than those of our rival countries." The minister emphasized that Korean companies can now compete in the U.S. market on "equal or even more favorable terms." He added that the government will actively support companies in enhancing their competitiveness and diversifying export destinations in this evolving trade environment.