S. Korea's monthly exports hit $115.3 billion in Oct on strong chip sales

Seoul, Nov 1

South Korea's exports jumped 93.7 per cent to a record $115.3 billion in October from a year earlier, driven largely by a sharp increase in semiconductor shipments, data showed on Sunday.

Strong global demand for semiconductors, coupled with continued investments by major technology companies in artificial intelligence (AI) infrastructure, boosted overall exports, the Ministry of Trade, Industry and Resources said in a press release.

Imports rose 36 percent from a year earlier to $72.78 billion, resulting in a trade surplus of $42.5 billion, reports Yonhap news agency.

Cumulative exports for the January-October period exceeded $900 billion for the first time, with the ministry projecting that the country's annual exports could reach $1 trillion as early as November if the current trend continues.

By sector, semiconductor exports, a key pillar of Asia's fourth-largest economy, skyrocketed 259 percent from a year earlier to $56.4 billion in October, the release said.

Exports of petroleum products jumped 80 percent to $6.92 billion, while those of petrochemical products rose 27.5 percent to $4 billion.

Cosmetics exports shot up 57.5 percent to $1.44 billion on rising demand in China, the United States and the European Union.

Automobile exports gained 18.1 percent to $6.55 billion, driven by increased overseas demand for gasoline hybrid models.

By destination, exports to China soared 133.6 percent to $26.98 billion, driven by strong shipments of semiconductors and wireless communications equipment.

Exports to China topped $20 billion for the fifth consecutive month.

Shipments to the United States surged 185.8 percent to $24.9 billion, supported by robust demand for semiconductors, computers and electrical equipment used in AI infrastructure.

The monthly report also showed exports to Southeast Asian countries rose 128 percent to $21.33 billion, while those to the European Union increased 56.4 percent to $8.1 billion, with both gains driven by strong shipments of chips and automobiles.

"The global trade environment remains uncertain, with many small and medium-sized enterprises facing difficulties amid rising protectionism in major economies, shifts in global supply chains and geopolitical tensions in the Middle East," Industry Minister Kim Jung-kwan said.