South Korea’s exports recorded their strongest growth in nearly half a century in June. A sharp rise in semiconductor sales, driven by global artificial intelligence investment, helped the country exceed market forecasts.
South Korea Exports Surge More Than 70%
Exports from Asia’s fourth-largest economy increased 70.9% year over year to $102.25 billion in June, according to preliminary trade data released on Wednesday.
The result marked a significant acceleration from the 53.4% increase recorded in May. It was also the strongest annual export growth since October 1978.
Economists had expected exports to rise by a median of 61%, according to a Reuters survey. However, the final figure exceeded all 13 forecasts included in the poll.
Semiconductor Exports Lead the Growth
Semiconductor exports jumped 199.5% to $44.8 billion as demand for chips used in artificial intelligence systems continued to grow.
The strong performance helped South Korea become the fourth country to record more than $100 billion in exports during a single month. Germany, China, and the United States had previously reached that milestone, according to the trade ministry.
Park Sang-hyun, an analyst at iM Securities, said exports should remain strong during the second half of the year, led primarily by semiconductors.
He added that there were few signs of the global chip boom losing momentum. However, he warned that the pace of export growth may be approaching its peak.
AI Demand Supports South Korea’s Chipmakers
South Korea is home to Samsung Electronics and SK Hynix, two of the world’s largest semiconductor manufacturers.
The country’s exports have increased consistently since June 2025. They have also recorded double-digit annual growth since December.
Rising investment in artificial intelligence infrastructure has increased demand for memory chips. As a result, chip prices and South Korean export revenues have climbed sharply.
Factory Activity Continues to Expand
A separate survey released on Wednesday showed that South Korea’s manufacturing activity expanded for a seventh consecutive month in June.
However, the pace of growth slowed compared with May due to weaker export demand in some areas.
Despite the slowdown in factory activity, several major product categories reported strong export growth.
Computer and Steel Exports Rise
Computer exports surged 308.8% in June as major technology companies continued to invest heavily in artificial intelligence.
Steel product exports also increased 9.6%, ending 13 consecutive months of decline. Demand linked to data center construction supported the recovery.
Meanwhile, petroleum product exports rose 49.8%, helped by higher global oil prices.
Shipments to China and the US Jump
Exports to China increased 92.1% from a year earlier, while shipments to the United States rose 78.6%.
South Korean exports to the European Union also climbed 31.8%.
However, exports to the Middle East declined 8.4%, making the region one of the few major markets to report weaker demand.
Imports Record Fastest Growth Since 2022
South Korea’s imports rose 30.1% to $66.10 billion in June. That followed a 20.7% increase in the previous month.
The result exceeded economists’ forecast for a 26.3% rise. It was also the fastest import growth recorded since May 2022.
South Korea Posts Record Trade Surplus
The country recorded a monthly trade surplus of $36.15 billion, the largest in its history.
South Korea’s total trade surplus reached $138.3 billion during the first half of the year. By comparison, the country posted a surplus of $77.4 billion for the whole of 2025.
The figures highlight the growing importance of artificial intelligence investment and semiconductor demand to South Korea’s export-led economy.
