South Korea's exports are surging on the back of a semiconductor boom. According to the Ministry of Trade, Industry and Energy, exports reached $87.75 billion in May, the highest monthly figure on record. After breaking the $80 billion monthly threshold for the first time in March, exports have exceeded that mark for three consecutive months, and the daily average export value surpassed $4 billion for the first time. The cumulative trade surplus for January through May stood at $101.9 billion, already exceeding the previous annual record of $95.2 billion set in 2017. At this pace, annual exports of $1 trillion are within reach.
Semiconductors have been the driving force. Semiconductor exports jumped 169.4 percent year-on-year in May to $37.16 billion, setting an all-time monthly record. The surge reflects explosive demand for HBM, DRAM and NAND flash as American and Chinese tech giants race to invest in AI infrastructure. Computer exports also climbed more than 290 percent, driven by rising demand for AI server SSDs. The semiconductor boom has more than offset headwinds from the war in the Middle East and the spread of protectionism, firmly anchoring South Korea's export performance.
Semiconductors have long been regarded as a cyclical industry, but the AI revolution has transformed their standing. Global tech giants are signing multi-year supply contracts to secure HBM and high-performance memory chips for AI data centers. HBM in particular is designed and produced to each customer's specifications, making it difficult to replace once a supplier enters the supply chain. Meanwhile, the expanding use of AI across applications — AI agents, physical AI, self-driving cars and robots — means supply is struggling to keep pace with demand.
Yet with semiconductors now accounting for more than 42 percent of total exports, excessive dependence warrants caution. The current surge in memory demand is underpinned by massive AI infrastructure investment from American and Chinese tech companies. Should that investment enthusiasm cool or profitability fall short of expectations, semiconductor demand will inevitably feel the impact. The challenge from Chinese memory makers is also a serious threat. CXMT and YMTC are rapidly expanding production capacity with government support and are set to begin full-scale mass production next year. If low-cost Chinese memory chips flood the market, the boom could quickly fade.
This rare semiconductor moment must be channeled into broader structural reform and innovation across industry. R&D, talent development and industrial infrastructure must be accelerated to sustain Korea's commanding lead in HBM and AI semiconductors. Efforts are also needed to strengthen the competitiveness of next-generation growth industries — future mobility, batteries, biotech and robotics — to broaden the export base, while raising the technological capabilities of small and midsize enterprises. This is an opportunity for the Korean economy to make a genuine leap forward.
meelee@heraldcorp.com
