Seoul: South Korea's exports increased by 4.3 percent in June compared to the previous year, driven by growing global demand for semiconductors. This development marks a recovery from the decline observed in May, as indicated by data released on Tuesday by the Ministry of Trade, Industry and Energy.
According to Yonhap News Agency, the country achieved outbound shipments totaling US$59.8 billion in June, setting a new record for the month. This rebound follows a 1.3 percent contraction the previous month. Imports also rose by 3.3 percent year-on-year to $50.72 billion, resulting in a trade surplus of $9.08 billion.
The Ministry attributed the export growth to the strong performance of semiconductors and automobiles, South Korea's top export items. Semiconductor exports surged 11.6 percent year-on-year to an unprecedented $14.97 billion in June, propelled by demand for high-value products like high bandwidth memory (HBM) chips and DDR5, with the growth of the artificial intelligence (AI) sector playing a significant role.
Memory chip exports exceeded $10 billion for the first time, as the average quarterly price of DRAM continued to rise. Additionally, auto exports climbed 2.3 percent to $6.3 billion, reaching a new high for June, fueled by strong electric vehicle (EV) demand in Europe. EV shipments rose by 11.2 percent, ending a 17-month decline, while hybrid car exports increased by 23.2 percent.
Exports of computers, including solid-state drives (SSDs), advanced 15.2 percent to $1.33 billion, and bio-health exports grew 36.5 percent to $1.66 billion, both reaching record highs for June. Ship exports also increased by 63.4 percent to $2.5 billion, continuing a four-month upward trend. Shipments of agro-fisheries products rose 7.7 percent to $1.03 billion, and cosmetics exports soared by 22 percent to $950 million.
Conversely, exports of petroleum and petrochemical products fell by 2 percent and 15.5 percent, respectively, to $3.62 billion and $3.36 billion. Steel exports also declined by 8 percent to $2.4 billion, affected by diminished global demand and a 50 percent tariff on all steel imports imposed by the U.S. administration.
Regionally, exports to the United States decreased by 0.5 percent to $11.24 billion amid U.S. tariff measures. Auto exports to the U.S. dropped by 18.4 percent, while chip and bio-health exports rose by 34.6 percent and 164.1 percent, respectively. Exports to China fell by 2.7 percent to $10.42 billion due to decreased demand for semiconductors, machinery, and displays. However, shipments to the Association of Southeast Asian Nations (ASEAN) increased by 2.1 percent to $9.76 billion, and exports to the European Union grew by 14.7 percent to $5.8 billion. Exports to Taiwan, a key destination for chips, rose by 31 percent to $4.34 billion, setting a new June record. Shipments to India, Japan, and the Middle East also increased by 2.3 percent, 3 percent, and 14.8 percent, respectively.
In the first half of the year, South Korea's combined exports amounted to $334.7 billion, a slight decrease of 0.03 percent compared to the previous year. Imports declined by 1.6 percent to $306.9 billion during the same period, resulting in a trade surplus of $27.8 billion.
Industry Minister Ahn Duk-geun noted that despite global trade challenges, including U.S. tariff measures and economic slowdowns, South Korea's exports remained stable in the first half of the year. He emphasized the government's commitment to mitigating the impact of U.S. tariffs on Korean companies through supportive measures and tariff negotiations with Washington.