South Korea’s exports hit a record high in October, recording their biggest increase in more than 50 years. An official report released on Sunday showed that strong global demand for advanced AI chips was the main reason behind the significant growth.
Exports from Asia’s fourth-largest economy increased 93.7 percent compared to October last year, reaching $115.28 billion. Economists had expected a 93.2 percent increase, but the actual figure was slightly higher. South Korea’s trade data often gives an early sign of how global trade is performing.
This is the fastest monthly growth since January 1974. It also beat September’s strong increase of 83.7 percent. Some of the growth came from having more working days this October than in the same month last year due to a difference in the timing of the Chuseok holiday.
Semiconductor sales were the biggest reason for the increase in exports. South Korea exported $56.44 billion worth of chips in October, up 259.4 percent from the same month last year. These chip exports made up almost half of South Korea’s total exports. Demand remained strong as major technology companies continued to invest billions of dollars in AI development.
Computer exports also saw a major increase, rising 496.6 percent as demand grew for powerful servers used to run AI services.
The growth was not limited to semiconductors. Exports of other goods also increased by 34 percent. Cosmetics, agricultural products, seafood, and health-related goods all reached record export levels for October.
South Korea’s exports increased across nearly all major markets. Sales to the United States rose 185.8 percent to about $24.9 billion. Exports to China grew 133.6 percent to nearly $27 billion, while shipments to Southeast Asia increased 128 percent. Sales to Europe also climbed 56.4 percent.
These strong results put South Korea close to reaching a major trade milestone. Minister of Trade, Industry and Resources, Kim Jung-kwan said the country is now on track to reach $1 trillion in annual exports by the end of November. Exports from January to October had already reached $930 billion. If South Korea reaches the $1 trillion mark, it will become the fourth country in the world to achieve this level, after the United States, China, and Germany.
From January to October, South Korea’s total exports increased by more than 60 percent compared to the same period last year.
This is a major achievement for South Korea’s economy. The country’s annual exports first crossed $100 billion in 1995. They later reached $500 billion in 2011 and $600 billion in 2018.
The growth in AI is also boosting South Korea’s wider economy. The country’s economy grew more than expected in the third quarter, supported by strong chip exports and investment. Major chipmakers Samsung Electronics and SK Hynix also reported a sharp rise in profits.
South Korea’s imports also increased by 36 percent to $72.78 billion. The rise was caused by higher oil prices and strong demand for equipment used to produce chips, as well as cars. The country recorded a trade surplus of $42.5 billion in October, down from September’s record surplus of $49.97 billion.
The strong results do not mean every business is making progress. Minister Kim said the global trade outlook remains uncertain. He explained that many small and medium-sized businesses are still facing challenges because of growing trade barriers, changing supply chains, and tensions in the Middle East.
South Korea’s trade figures show that the global push to develop AI is playing a major role in supporting the country’s economic growth.
