South Korean Exports Rise $368.7 Billion in a Year... 74% Fueled by 'Semiconductor Strength'

Semiconductor exports totaled $139.2 billion through Nov. 10 last year
Nearly tripled to $413.4 billion this year
As exports become increasingly semiconductor-centric, South Korea's economy faces a test of its ability to take a new leap forward

South Korean exports are on the verge of reaching $1 trillion annually for the first time. The increase has been driven by a semiconductor supercycle fueled by expanded investment in artificial intelligence (AI). Semiconductors account for 74.3% of this year's export growth, making their contribution to growth overwhelmingly large. However, as South Korea's reliance on semiconductors deepens, the $1 trillion milestone is putting the country to the test: Will it become a new springboard for the economy, or remain a temporary record driven by a boom in a single industry?

According to the Ministry of Trade, Industry and Energy and the Korea Customs Service on November 11, cumulative exports this year, from January 1 to November 11, totaled $963.663 billion, up 62.0% from the same period a year earlier. Cumulative exports in the same period last year totaled $594.9 billion, meaning exports rose by $368.763 billion in a year. During this period, semiconductor exports surged nearly threefold, up 196.9%, from $139.229 billion to $413.393 billion. Semiconductors accounted for 74.3% of the increase in total exports.

Semiconductor export growth is accelerating. After rebounding with an 11.9% year-over-year increase in March 2025, the growth rate gradually climbed to 43.2% in December. It accelerated further this year, reaching 102.8% in January, 199.5% in June, and 259.4% in October. Amid this rapid growth, semiconductor exports exceeded $50 billion in both September and October. The increase was driven by continued capital investment by global big tech companies seeking to secure leadership in the AI industry. Over the same period, the fixed price of DDR5 16Gb memory rose from $40 in June to $50 in October, while the price of 128Gb NAND increased from $28.80 to $30.60.

The boom in semiconductors, a major driver of South Korean exports, is expected to continue for the time being. Kim Yangpaeng, a senior researcher at the Korea Institute for Industrial Economics and Trade, said, "Semiconductor export growth is expected to continue this year, and the trend is likely to remain unchanged through the first half of next year. However, in the second half of next year, as capacity expansions by global companies ease supply shortages to some extent, prices may fall. Export volumes may change little, but export value could decline from current levels." Strong semiconductor exports also drove a sharp increase in total exports. Monthly exports topped $80 billion in March this year, reaching $87.4 billion, then hit $102 billion in June and a record $121.1 billion in September.

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However, some have warned against an excessive concentration in semiconductors. Semiconductors accounted for an average of just 24.4% of total exports last year, but their share exceeded 30% at 31.2% in January this year, then rose to 44.0% in June and 49.0% in October. From November 1 to 10, the figure reached 49.7%, meaning semiconductors accounted for nearly half of exports.

Kang Insoo, a professor in the Department of Economics at Sookmyung Women's University, said, "Strong semiconductor exports, thanks to the global semiconductor supercycle and the AI boom, are not in themselves a problem. But a share nearing 50% means the impact could be substantial if the semiconductor industry is hit in the future. The government is aware of this and is pursuing megaprojects in areas including physical AI, AI data centers, displays, and biotechnology, alongside semiconductors. It should therefore work to maintain the semiconductor industry's clear technological lead while actively fostering and supporting other industries."

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