Semiconductor Boom Drives Export Surge: July Hits Record $98.9 Billion in Exports (Comprehensive)

19 Out of 20 Key Export Items Rise on Surging Demand for AI Memory and SSDs

Trade Surplus Hits $30.3 Billion; Exports to China and the US Show Strong Growth

Yonhap News Agency

South Korea's exports continued to hit record-high levels in July, the first month of the second half of the year. This was driven by the ongoing semiconductor boom fueled by increased investment in artificial intelligence (AI), along with strong growth across core export products such as computers, automobiles, ships, and petroleum products. As a result, the country marked its 14th consecutive month of breaking monthly records for exports in that particular month. In terms of total monthly export value, July posted the second-highest figure ever, following June. However, the government has expressed concerns that export conditions in the second half of the year will be challenging due to new tariff measures under Section 301 of the U.S. Trade Act and the rise of protectionism, and has announced plans to actively bolster its trade policy response.

According to the “July Export and Import Trends” released by the Ministry of Trade, Industry and Energy on August 1, exports last month reached USD 98.89 billion, up 62.8% from the same month last year. Imports grew by 26.5% to USD 68.56 billion, and the trade balance recorded a surplus of USD 30.32 billion. The trade surplus has now exceeded USD 30 billion for two consecutive months, with the cumulative surplus for January to July this year reaching USD 168 billion, an increase of USD 134.1 billion compared to the same period last year.

Exports in July were the highest ever for the month of July, setting a new record for 14 consecutive months when compared year-on-year. In terms of total monthly exports, July achieved the second-best result after June, which posted USD 102.17 billion. The average daily export value, adjusted for business days, also surpassed USD 4.12 billion for three consecutive months, marking a 69.6% year-on-year increase.

The latest performance was led by the boom in semiconductors driven by AI proliferation. Semiconductor exports surged 178.8% to USD 41.01 billion, exceeding USD 40 billion for the second straight month. This was attributed to sustained demand for server memory, driven by AI democratization and the expansion of agentic AI, along with a continued rise in contract prices for DDR5 and NAND flash.

The expansion of AI infrastructure investment also led to a surge in computer exports. As corporate demand for SSDs increased, computer exports climbed 404% to USD 4.79 billion, maintaining triple-digit growth rates for six consecutive months. Wireless communication devices rose by 51.0% thanks to the strong sales of premium products like the Galaxy S26, while displays turned positive due to expanded supply of new foldable iPhones.

In the mobility sector, automobile exports rose by 7.0% to reach USD 6.24 billion. Hybrid and electric vehicle exports increased by 22.2% and 31.9%, respectively, while exports of internal combustion engine vehicles declined by 3.1%. New vehicle exports grew as major automakers shifted their summer vacation schedules from the end of July last year to early August this year. However, used car exports declined due to factors such as the Middle East war and the tightening of regulations in key markets. Ship exports also surged by 46.9% as deliveries of high-value-added ships, including LNG carriers, rose.

While export values for petroleum products and petrochemicals also increased, there were some differences in detail. Petroleum products saw export value rise by 34.1% as unit prices increased by 46.9% on the back of higher international oil prices, although export volume fell by 8.8%. In petrochemicals, supply to the domestic market was prioritized, which caused export volume to shrink by 9.1%, but higher prices led to a 10.3% increase in export value. General machinery exports rose by 5.9%, benefiting from a partial easing of US tariffs on steel and aluminum under Section 232, while steel exports continued their upward trend for the second consecutive month, boosted by increased demand from the global construction of data centers.

Consumer goods also maintained their strong performance. Biohealth exports jumped 30.4% to the highest July level ever, supported by increased Biopharmaceuticals market share. Cosmetics exports surged 37.8% as sales grew in the United States and Europe. Agricultural and marine food exports, led by products such as ramen and kimchi, rose by 2.3%, also achieving the highest July result on record.

By region, exports increased in eight out of South Korea’s nine largest export markets. Exports to China rose by 96.2% to USD 21.68 billion, mainly due to strong demand for semiconductors, and maintained an increase for the ninth consecutive month. Exports to the United States rose by 68.7% on growing demand for semiconductors and computers driven by expansion in AI data center investments, but exports of automobiles and auto parts declined as local production by Korean automakers increased. Exports to the ASEAN region (USD 18.8 billion) and the EU (USD 9.38 billion) both reached record monthly highs. Exports to the Middle East turned positive again, supported by strong performance in general machinery, petrochemicals, and wireless communication devices.

Among the 20 key export items, 19 items excluding home appliances recorded increased exports. In addition to semiconductors, computers, automobiles, ships, petroleum products, general machinery, electric devices, biohealth, and cosmetics, many items achieved all-time high results, reflecting a balanced export recovery that was not concentrated in a specific industry.

Trade Minister Kim Jeongkwan commented, “We expect export conditions to remain challenging due to new tariff actions under Section 301 of the U.S. Trade Act, the strengthening of protectionism in major countries, and uncertainties surrounding the Middle East situation. The government will carefully monitor major items and conditions in each market, and will mobilize all available policy tools to ensure that companies can respond in a timely manner to changes in the trade environment, including tariff and non-tariff barriers.”

This content was produced with the assistance of AI translation services.