Exports top $80B for third straight month; trade surplus hits all-time high for January–May period; semiconductor share reaches 42% of total, raising concentration fears; auto exports slip while shipments to China and US rise
A 169.4 percent year-on-year surge in semiconductor exports pushed South Korea's total monthly exports to an all-time high in May, as the AI-driven chip boom proved resilient against Middle East war-related logistics disruptions, elevated oil prices and global trade uncertainty. With semiconductors now accounting for more than 40 percent of total exports, however, concerns are growing that the country's trade performance has become dangerously dependent on a single sector.
May exports reached $87.75 billion on a customs-clearance basis, up 53.2 percent from the same month last year, the Ministry of Trade, Industry and Energy said Monday. The figure marks the highest monthly export total in history. South Korea has now exceeded $80 billion in exports for three consecutive months, following $87.2 billion in March and $85.9 billion in April.
The performance looks even stronger when adjusted for working days. May had 21.5 working days, one more than the 20.5 logged in the same month last year, yet the daily average still hit a record $4.28 billion — a year-on-year increase of 60.7 percent.
Cumulative exports for January through May reached $394.2 billion, up 43.4 percent from the same period last year, making it increasingly likely that South Korea will far exceed the annual export target of $740 billion the ministry set in February.
Semiconductors were the clear engine of growth. Chip exports surged 169.4 percent from a year earlier to $37.15 billion in May, topping $30 billion for the third consecutive month and setting yet another monthly record.
Soaring memory chip prices amid intensifying competition to build AI data centers and servers drove much of the boom. The price of DDR4 8Gb chips jumped 863 percent over the past year, from $1.35 to $13.00, while DDR5 16Gb and NAND 128Gb prices more than six times, lifting overall export values.
The concern is that export growth has become excessively reliant on semiconductors. Chips accounted for 42.3 percent of total exports last month — far above the mid-to-high 20 percent range seen during the 2018 super cycle. Analysts warn that the broader economy could become hostage to the semiconductor cycle: growth may hold as long as the AI boom continues, but a downturn in the chip market could drag down exports across the board.
Automobiles, the second-largest export category, fell 5.9 percent year-on-year to $5.83 billion, weighed down by domestic auto parts supply disruptions, the Middle East war and the expansion of overseas production.
Petroleum product exports rose 46.8 percent to $5.25 billion on higher unit prices tied to rising oil prices, though actual export volumes fell 23.8 percent.
By destination, exports to China climbed 80.9 percent to $18.9 billion, extending a positive run to seven consecutive months. Exports to the United States rose 59.1 percent to $15.97 billion.
Imports rose 20.8 percent to $60.8 billion, leaving a trade surplus of $26.95 billion for the month. The cumulative trade surplus for January through May reached $101.91 billion, already surpassing the previous record for a full calendar year.
"May exports have maintained positive growth, extending the streak to 12 consecutive months of export gains since the current administration took office," Trade, Industry and Energy Minister Kim Jung-kwan said. "The January-to-May trade surplus has also broken the previous record for an annual trade surplus."
Kim cautioned that uncertainty remains in the trade environment, citing the unresolved Middle East war, US tariffs and the EU's steel tariff-rate quota system. "The government will work closely with major trading partners to reduce trade risks for Korean companies and create a stable export environment," he added.
oskymoon@heraldcorp.com
