South Korea’s Chip-Led Exports Accelerate, Bringing $1 Trln Annual Target Closer

South Korea’s semiconductor-driven export growth accelerated at a stronger-than-expected pace in October, bringing the country closer to its unprecedented $1 trillion annual export target.

The country, home to the world’s two largest memory-chip makers Samsung Electronics and SK Hynix, continues to benefit from the artificial-intelligence boom. The exploding AI infrastructure investment is driving demand for powerful computing chips on an unprecedented scale.

Exports from Asia’s fourth-largest economy rose 93.7% from a year earlier to $115.28 billion, accelerating from September’s revised 83.7% increase, according to preliminary data released by the Ministry of Trade, Industry and Energy on Sunday.

That brought cumulative exports for the first 10 months of the year to $930 billion.The latest trade figures were stronger than expected, exceeding the median forecast for 86.7% growth in a Wall Street Journal survey of 11 economists.

Imports rose 36.0% to $72.78 billion, resulting in a trade surplus of $42.50 billion in October. The surplus exceeded the market consensus estimate of $38.28 billion, but fell short of the prior month’s revised record of $49.97 billion.

Semiconductor exports were the main driver of growth, more than tripling from a year earlier to $56.44 billion in October.

Samsung and SK Hynix last week reported record earnings for consecutive quarters, benefiting from tight supply and robust demand for memory chips and other hardware used in AI computing.

Both companies reiterated their expectation that semiconductor shortages will persist for the next few years, suggesting the AI-driven chip demand will remain strong and supporting prospects for broader economic growth.

Sunday’s data showed that non-chip sectors also performed well. Vehicle exports rebounded as production returned to normal following the settlement of labor unrest at Hyundai Motor, the country’s largest carmaker.

Auto exports rose 18% in October from a year earlier. Exports of petroleum products and petrochemical goods also increased 80% and 28%, respectively.

By destination, exports to the U.S. nearly tripled from a year earlier in October, and those to China more than doubled in October. Shipments to the Middle East rose 11% despite a prolonged conflict in the region.

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