South Korea achieved its most robust export performance in more than 40 years during May, with international sales climbing at a pace not seen since the 1980s, driven primarily by unprecedented demand for computer chips used in artificial intelligence applications.
The Asian nation’s overseas shipments increased by 53.2% compared to the same period last year, reaching a record $87.75 billion according to preliminary government trade figures released Monday. This growth exceeded analyst projections, which had anticipated a 48.4% gain based on a Reuters survey.
The May results marked the twelfth straight month of year-over-year export increases and represented the largest percentage growth recorded since January 1984.
Semiconductor shipments experienced dramatic growth, skyrocketing 169.4% to an unprecedented monthly total of $37.16 billion. The trade ministry attributed this surge to rising memory chip prices fueled by increased spending from American technology companies.
Computer equipment sales also demonstrated remarkable growth, climbing 290.7% due to demand for AI server technology. Petroleum product exports advanced 46.6% on elevated oil prices. However, automobile shipments declined 5.9%, affected by supply chain disruptions in the Middle East and the impact of American tariffs.
Regional export patterns showed significant variation, with deliveries to the United States increasing 59.1% and shipments to China rising 80.9%. Conversely, exports to Middle Eastern markets dropped 7.7%.
The country’s central bank recently revised its annual economic growth projection upward to 2.6% from an earlier estimate of 2.0%, following the trade-dependent economy’s strongest quarterly performance in nearly six years, powered by booming semiconductor exports.
Import activity also strengthened, rising 20.8% in May to reach $60.80 billion. While this fell short of economist expectations for a 21.5% increase, it still represented the highest import growth since August 2022.
The nation recorded a trade surplus of $26.95 billion, expanding from the previous month’s $23.75 billion surplus and setting an all-time record.
