Semiconductors account for 49% of October exports at $56.44 billion; trade surplus hits $42.5 billion for second straight month above $40 billion

Export containers at a port in Busan [Yonhap]
Export containers at a port in Busan [Yonhap]

South Korea's exports from January through October surged more than 60 percent from a year earlier, driven by a semiconductor boom, crossing $900 billion for the first time in history. The milestone makes it virtually certain that annual exports will surpass $1 trillion before the end of this month.

The Ministry of Trade, Industry and Energy said Sunday that October exports reached $115.28 billion on a preliminary customs basis, up 93.7 percent from the same month last year.

Following $121.1 billion in September, exports exceeded $110 billion for the second consecutive month. Cumulative exports from January through October reached $930 billion, surpassing $900 billion for the first time in history — a 60.6 percent increase from $579.06 billion in the same period last year.

October had 22 working days, two more than the same month last year when the Chuseok holiday fell in October, pushing the daily average export figure to $5.24 billion, a 76.1 percent increase.

The ministry projected that annual exports will cross the $1 trillion mark sometime in November if the current trend continues.

Semiconductor exports in October totaled $56.44 billion, up 259.4 percent from October last year, accounting for roughly 49 percent — nearly half — of total exports. Semiconductor exports have exceeded $50 billion for two consecutive months.

Among the top 20 major export items, 18 recorded growth. By region, exports rose in seven of nine tracked markets. Exports to China jumped 133.6 percent to $26.98 billion, while exports to the United States climbed 185.8 percent to $24.9 billion.

October imports rose 36.0 percent to $72.78 billion, leaving a trade surplus of $42.5 billion — the second straight month the surplus has exceeded $40 billion.

"October again saw robust export growth of over $110 billion, making it virtually certain that annual exports will reach $1 trillion in November," Minister Kim Jung-kwan said. "This reflects expanding demand for advanced industries such as semiconductors driven by AI sector growth, as well as the efforts of Korean companies that have remained competitive in global markets despite challenging external conditions."

Kim added, however, that many small and mid-sized companies are still struggling with uncertainty in the global trade environment — including the rise of protectionism in major economies, the restructuring of global supply chains, and geopolitical instability in the Middle East. "We will focus all our policy resources on actively resolving export obstacles at home and abroad so that small and mid-sized companies can also share broadly in the gains from export growth," Kim said.


oskymoon@heraldcorp.com