Semiconductors and automobiles boost Korea’s export drive

Last month, Korea’s exports continued to show positive growth for 13 consecutive months. Exports achieved the highest performance on a monthly basis, and set a ‘highest ever’ record for three consecutive months since August. Last month’s export performance was led by semiconductors and automobiles. Both items recorded the highest performance ever in the same month, leading October’s exports.

Exports to Korea’s two major export markets also showed signs of greater activity. Exports to China increased 10.9% year-on-year to US$12.2 billion, achieving the highest performance in 25 months, while exports to the USA also showed the highest monthly performance of $10.4 billion (+3.4%). In particular, exports to China showed the highest performance of the year in just one month.

According to the ‘October Export and Import Trends’ recently announced by the Ministry of Trade, Industry and Energy (MOTIE), exports last month increased by 4.6% year-on-year to $57.52 billion, surpassing the October 2021 performance ($55.7 billion), and recording the largest export amount in October ever.
Among the 15 major export items, exports of 10 items increased, with the largest export item of semiconductors rising for 12 consecutive months.

Exports of semiconductors, a ‘good-selling item,’ recorded the highest performance in October ever at $12.5 billion (+40.3%), breaking the record for the highest performance in October in six years, compared with $11.6 billion in October 2018. MOTIE analyzed that solid demand for semiconductors will continue, centered on high-value memory, due to new investments in AI servers and increased demand for replacement of general servers.

Computer exports also continued to show a good level of demand compared to the previous year, centered on enterprise SSDs. Computers continued to increase for 10 consecutive months, with a double-digit increase (+54.1%) to $1 billion. Exports of IT items such as wireless communication devices (+19.7%) also increased for eight consecutive months, recording $2 billion.
Automobile exports, the second-largest export item, recorded $6.2 billion, up +5.5% year-on-year.

Automobiles also achieved their highest performance in October, and renewed their monthly highest export performance for the second month in a row.

Automobiles are continuing the ‘new car effect,’ while hybrid car exports are also showing a favorable trend. It is evaluated that the increase was also due to the expansion of production through weekend overtime and overtime work at GM Korea. Automobile parts also recorded $1.9 billion, up 5.9%, and turning positive for the first time in three months, thanks to the favorable export trend.

Steel exports recorded $2.9 billion, up +8.8%, breaking the negative trend of the past eight months and turning positive. Petrochemical exports showed a recovery, recording positive figures for the first time in two months, while textile and home appliance exports recorded positive figures for the first time in three months. Petrochemical exports increased by 10.2% to $4 billion, while textiles and home appliances increased by 2.5% and 5%, respectively.

Petroleum product exports recorded $3.4 billion, down -34.9% year-on-year, due to factors such as a decline in product prices linked to oil prices.

Among the nine major export markets, exports to five countries, including China and the United States, increased. In particular, exports to China recorded $12.2 billion (+10.9%), the highest in 25 months since September 2022, as semiconductor and petrochemical exports increased significantly.

Exports to the United States also recorded $10.4 billion (+3.4%), the highest performance in October ever.
Exports to China have been over $10 billion for eight consecutive months, breaking the record for the highest month of the year in just one month, while exports to the United States have been breaking monthly records for 15 consecutive months.
 
 
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