Seoul: South Korean companies expect their export conditions to improve slightly in the fourth quarter, especially for the semiconductor, tech, and shipbuilding sectors, a report showed Thursday.

According to Yonhap News Agency, the Korea International Trade Association (KITA) reported that the country's Export Businesses Survey Index (EBSI) for the fourth quarter reached 101.4, surpassing the 100-point threshold for the first time in a year. The EBSI measures the domestic export companies' outlook on export conditions for the next quarter, with values above 100 indicating a positive outlook.

The index for semiconductors was the highest at 145.8, as expectations grow for a recovery in memory chip prices and increased demand for semiconductors used in the artificial intelligence ecosystem during the October-December period. Telecommunication devices and ships followed, with EBSI values of 119.2 and 110.3, respectively.

KITA highlighted the positive outlook for ships, partly due to the Make American Shipbuilding Great Again (MASGA) project, a shipbuilding partnership under a trade agreement with the United States signed in late July. "Expectations for a recovery in exports are growing, particularly for the country's major export items, such as ships and semiconductors. But uncertainties regarding global trade and cost increases are still looming," the report noted.

In contrast, plastic and leather goods, along with cars, were lower on the spectrum, with EBSI values of 62.4 and 69.3, respectively. The low index for cars is attributed to uncertainties surrounding Washington's high auto tariffs on Korean automobiles and auto parts.

On July 30, President Donald Trump announced a reduction in duties on South Korean cars and car parts from 25 percent to 15 percent, contingent upon Seoul's investment of $350 billion in the U.S. However, the change has yet to be implemented as the two countries continue negotiations over investment details.