Seoul: South Korea's exports increased by 1.3 percent in August compared to the previous year, driven by strong demand for semiconductors despite the impact of U.S. tariffs. Government data revealed that outbound shipments reached USD 58.4 billion, marking the third consecutive month of growth.
According to Yonhap News Agency, data from the Ministry of Trade, Industry and Energy indicated that imports fell by 4 percent to USD 51.89 billion, resulting in a trade surplus of USD 6.51 billion. Semiconductor exports surged by 27.1 percent to an all-time high of USD 15.1 billion, fueled by a rise in memory chip prices due to increased global investment in artificial intelligence infrastructure.
Auto exports rose 8.6 percent to USD 5.5 billion, the highest figure for August, supported by demand for electric and hybrid vehicles. Ship exports increased by 11.8 percent to USD 3.14 billion, continuing a six-month upward trend. Exports of agro-fisheries products grew by 3.2 percent to USD 960 million, setting a record for August.
Cosmetics exports expanded by 5.1 percent to USD 870 million amid the global popularity of Korean culture, and electronic device exports climbed 5.6 percent to USD 1.29 billion, both achieving record highs for August. However, exports of petroleum and petrochemical products decreased by 4.7 percent and 18.7 percent, respectively, due to global oversupply.
Shipments of displays fell 9.2 percent to USD 1.65 billion, while exports of wireless communications equipment declined 14.1 percent to USD 1.56 billion. Secondary battery exports plunged 31.3 percent to USD 490 million. Steel exports dropped 12.6 percent to USD 690 million, affected by 50 percent U.S. tariffs on steel imports.
Exports to the United States decreased by 12 percent to USD 8.74 billion, impacted by reduced shipments of steel, automobiles, and machinery due to U.S. tariff policies. Steel exports to the U.S. fell by 32.1 percent, and auto parts exports declined by 14.4 percent. The government plans to address potential impacts from the U.S.'s stricter semiconductor export control mechanisms.
Exports to China fell by 2.9 percent to USD 11.01 billion due to overall weakness in export items. Exports to the European Union dropped by 9.2 percent to USD 5.81 billion, reflecting sluggish demand for machinery, petrochemical, and biohealth products. Shipments to Japan and India also decreased by 5.2 percent and 4.8 percent, respectively.
Conversely, exports to the Association of Southeast Asian Nations (ASEAN) rose by 11.9 percent to USD 10.89 billion, driven by strong semiconductor and ship demand. Shipments to the Middle East increased by 1 percent to USD 1.4 billion, while exports to the Commonwealth of Independent States (CIS) grew by 9.2 percent to USD 1.12 billion. Exports to Taiwan surged by 39.3 percent to USD 4.38 billion, boosted by the semiconductor sector.
Industry Minister Kim Jung-kwan noted that the growth in exports reflects the competitiveness and commitment of Korean companies despite challenging conditions, such as U.S. tariff policies. The government plans to announce a support package for small and medium-sized exporters to help diversify destinations and enhance competitiveness.