Semiconductor exports surge 155%, driving South Korea's early-August shipments to record high

South Korea's exports surged more than 45 percent in the first 10 days of August compared with the same period last year, fueled by a semiconductor boom, setting a record for early-August shipments. Semiconductors accounted for nearly half of total exports, while passenger car shipments plunged more than 80 percent as summer vacation schedules cut into working days.

Exports from Aug. 1 to 10 reached $21.3 billion on a customs-clearance basis, a 45.3 percent increase from the same period a year earlier, the Korea Customs Service said Tuesday. The figure is the largest ever recorded for the first 10 days of August, surpassing the previous record of $15.6 billion set in August 2022.

The number of working days held steady at seven, matching last year, and the daily average export value rose 45.3 percent year-on-year to $3.04 billion.

Cumulative exports from January through Aug. 10 totaled $616.35 billion, up 50.3 percent from the same period last year. Monthly exports have set consecutive all-time records for 14 straight months through July, raising the prospect that annual exports could surpass $1 trillion this year.

Semiconductors led the surge, with shipments jumping 155.4 percent to $10 billion — another record for the early-August period. Their share of total exports climbed to 46.8 percent, up 20.1 percentage points from the same period last year, the second-highest share on record after the 47.0 percent posted in early May.

Semiconductor exports maintained solid momentum despite concerns over Apple's possible adoption of Chinese memory chips and the release of new AI models by Chinese firms, as contract prices continued to rise.

Petroleum products (up 65.3 percent) and computer peripherals (up 139.5 percent) also posted export gains.

Six of the country's 10 major export items declined, including wireless communication devices (down 9.1 percent), vessels (down 58.2 percent), passenger cars (down 80.9 percent) and auto parts (down 36.3 percent).

The Ministry of Trade, Industry and Energy said the sharp drop in passenger car exports was largely because summer factory shutdowns, which were spread across late July and early August last year, were concentrated in early August this year.

By destination, exports rose to China (up 134.8 percent), Vietnam (up 45.4 percent), Hong Kong (up 259.4 percent) and the EU (up 57.2 percent). Exports to the United States, however, edged down 0.2 percent, partly due to the decline in passenger car shipments.

The top three export destinations — China, Vietnam and the United States — together accounted for 52.5 percent of total exports during the period.

Imports over the same period reached $19.5 billion, up 23.1 percent from a year earlier.

By product, imports of semiconductors (up 90.8 percent) and semiconductor manufacturing equipment (up 77.3 percent) increased, while crude oil (down 16.9 percent) and gas (down 10.0 percent) fell. Total energy imports — covering crude oil, gas and coal — declined 13.8 percent, reflecting a drop in energy purchases centered on the Middle East.

By country, imports rose from China (up 48.3 percent), the United States (up 38.2 percent), Japan (up 47.3 percent) and the EU (up 15.9 percent), while imports from Saudi Arabia fell 37.7 percent.

With exports outpacing imports, the trade balance posted a surplus of $1.8 billion.