South Korea's exports nearly doubled in October, registering their strongest annual growth in more than five decades, as surging global investment in artificial intelligence (AI) infrastructure fuelled demand for semiconductors, memory chips and computer equipment.
According to data released by South Korea's Ministry of Trade, Industry and Resources on Sunday, exports rose 93.7% year-on-year to a record $115.28 billion in October. This was the sharpest annual increase since January 1974.
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Semiconductors emerged as the biggest contributor to South Korea's export boom, with overseas shipments increasing 259.4% year-on-year to $56.44 billion in October, according to the Trade Ministry.
The surge was supported by strong global investments in AI infrastructure, increasing demand for advanced memory chips, higher semiconductor prices, increased shipment volumes and continued investment in production facilities by major global technology companies.
Semiconductors accounted for approximately 49% of South Korea's total exports during the month of October.
Computer exports also recorded an extraordinary increase, jumping 496.6%, as the demand for servers and infrastructure supporting AI services increased, Reuters reported.
The surge comes amid an intensifying global race among technology companies to expand AI computing capabilities, driving demand for advanced memory chips and server equipment.
Exports To US And China Surge
South Korea recorded significant export growth across several major international markets in October.
According to the Trade Ministry, exports to China increased 133.6% year-on-year to $26.98 billion, supported by strong shipments of semiconductors and wireless communication equipment.
Shipments to the United States also surged 185.8% to $24.9 billion, with semiconductors, computers and electrical equipment used in AI infrastructure contributing to the increase.
Exports to Southeast Asia rose 128% to $21.33 billion, with shipments to the European Union increased 56.4% to $8.1 billion.
Overall, exports increased in seven of South Korea's nine major export destinations.
Automobile and Cosmetics Exports Also Rise
The export expansion extended beyond the semiconductor industry, with several other sectors recording growth.
According to the Trade Ministry, automobile exports increased 18.1% year-on-year to $6.55 billion, marking the highest October figure on record. Strong overseas demand for hybrid vehicles also contributed to the increase.
Petroleum product exports rose 80% to $6.55 billion, while petrochemical exports increased 27.5% to $4 billion.
South Korea's cosmetic industry also recorded strong growth, with exports increasing 57.5% to $1.44 billion amid rising demand in China, the United States and the European Union.
Exports of biotechnology and healthcare products increased 30.2% to $1.53 billion, while agricultural and fishery product exports rose 11.6% to $1.11 billion, according to the ministry.
South Korea To Cross $1 Trillion Milestone
The October performance has brought South Korea closer to crossing $1 trillion in annual exports for the first time.
According to the Trade Ministry, the country's cumulative exports between January and October reached approximately $930 billion, marking a 60.6% increase compared with the corresponding period last year.
South Korean Trade Minister Kim Jung-kwan stated that the country was virtually certain to achieve the $1 trillion milestone in November, citing sustained export growth and increasing demand for advanced industries driven by AI expansion.
Crossing the milestone would make South Korea the fourth economy in the world to record annual exports exceeding $1 trillion, after the United States, China and Germany, Reuters reported.
Risks
However, the country's growing dependence on semiconductor exports also has some risks. In a separate report, Reuters reported that the Bank of Korea warned that semiconductor exports could fall between $50 billion and $100 billion below earlier forecasts in 2027 if major US technology companies reduce their AI infrastructure spending.
The central bank's pessimistic warning assumed that Korean chip prices would decline by 10%. Reuters reported that such a decline could reduce South Korea's GDP growth by approximately 0.4 percentage point and weaken its current account surplus.
The warning highlights how closely South Korea's economic outlook is tied to the sustainability of the global AI investment boom.
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