Seoul: South Korea's exports soared to an unprecedented $709.7 billion in 2025, marking the first time the nation surpassed the $700 billion milestone, as revealed by government data on Thursday.
According to Yonhap News Agency, annual exports witnessed a 3.8 percent increase compared to the previous year. This growth was propelled by a remarkable 22.2 percent rise in semiconductor exports, which reached a record $173.4 billion, largely due to advancements in artificial intelligence (AI). Meanwhile, imports saw a slight decline of 0.02 percent to $631.7 billion, resulting in a trade surplus of $78 billion, the largest since 2017.
The Ministry of Trade, Industry and Resources credited the record-breaking export figures to the robust performance of key sectors like semiconductors, automobiles, and ships, along with growth in smaller industries such as agro-fisheries and cosmetics. Notably, South Korea's export destinations diversified, with reduced shipments to the United States and China amid increased trade protectionism, while exports to the Association of Southeast Asian Nations (ASEAN), Latin America, and the Commonwealth of Independent States (CIS) witnessed an upward trend.
Semiconductor exports hit a record $173.4 billion as memory chip prices surged amid strong demand from AI data centers. Car exports also reached an all-time high of $72 billion, despite the impact of U.S. tariffs. Although shipments to the U.S. decreased, exports to the European Union (EU) and CIS expanded due to rising demand for hybrid cars and used vehicles.
Biohealth exports increased by 7.9 percent to $16.3 billion, with ships and computers seeing growth of 24.9 percent and 4.5 percent, respectively, amounting to $32 billion and $13.8 billion. Agro-fisheries and cosmetics exports rose by 6 percent and 11.8 percent, driven by the global appeal of Korean culture. Conversely, exports of petrochemical products and steel fell by 11.4 percent and 9 percent amid global oversupply.
In terms of destinations, exports to the U.S. decreased by 3.8 percent to $122.9 billion due to the Trump administration's tariff measures, resulting in a $6.1 billion drop in Korea's trade surplus with the U.S., which stood at $49.5 billion. Exports to China fell by 1.7 percent to $130.8 billion, affected by weaker demand for petrochemical products and machinery.
Shipments to ASEAN increased by 7.4 percent to $122.5 billion, bolstered by semiconductor exports, while exports to the EU rose by 3 percent to $70.1 billion due to strong demand for automobiles and ships. Exports to the CIS surged by 18.6 percent to $13.7 billion, and exports to India climbed by 2.9 percent to a record $19.2 billion. Exports to the Middle East and Latin America also rose, continuing their upward trend for several consecutive years.
In December, South Korea's exports expanded by 13.4 percent year-on-year to $69.6 billion, marking the 11th consecutive month of growth. Imports increased by 4.6 percent to $57.4 billion, resulting in a trade surplus of $12.2 billion, according to the ministry.
Industry Minister Kim Jung-kwan highlighted the achievement, stating it reflects the resilience and growth potential of South Korea's economy amid challenging domestic and external conditions. Kim emphasized the government's commitment to minimizing risks to exports amid ongoing global trade uncertainties, including anticipated tariff hikes by Mexico and the EU's carbon border tax. The government plans to supply a record 275 trillion won in trade insurance and promote AI transformation in manufacturing to sustain export growth.