S. Korea's exports hit record $35b in early September, chips near half of total

South Korea's exports set another record high, driven by a more than 270 percent surge in semiconductor shipments. As expanded investment in AI infrastructure continued to fuel chip demand, semiconductors accounted for nearly half of the country's total exports in early September. Boosted by the semiconductor boom, Taiwan overtook Vietnam to become South Korea's third-largest export destination.

Exports totaled $34.97 billion during Sept. 1-10, up 82.6 percent from the same period last year, according to the Korea Customs Service. That marks the highest figure on record for the first 10 days of September. It surpassed the previous record of $30 billion, set in early July, within just two months.

The number of working days stood at 8.5, unchanged from a year earlier, and average daily exports adjusted for working days also rose 82.6 percent to $4.11 billion.

Cumulative exports this year reached $728.56 billion. On Saturday, cumulative exports hit $709.4 billion, already surpassing last year's full-year total of $709.3 billion. That means South Korea reached last year's record annual export total 117 days earlier than it did the previous year.

If this trend continues, South Korea could reach $1 trillion in annual exports this year. Currently, only three countries — the United States, China and Germany — have surpassed that mark in a single year.

By item, semiconductor exports jumped 270.1 percent from a year earlier to $16.48 billion, marking a record for the Sept. 1-10 period. Semiconductors accounted for 47.1 percent of total exports, up 23.9 percentage points from the same period last year. The increase was driven by solid AI infrastructure demand, fueled by expanded capital expenditure from hyperscalers such as Google and Amazon.

Semiconductor exports have set five monthly records this year alone — starting with $25.1 billion in February, followed by $32.8 billion in March, $37.2 billion in May, $44.8 billion in June and $46.7 billion in August.

Besides semiconductors, exports of petroleum products rose 57 percent, passenger cars 10 percent, ships 66.8 percent and steel products 10.3 percent. Exports of precision instruments fell 4.8 percent.

By destination, exports grew broadly across major markets — up 103 percent to China, 137.5 percent to the United States, 176 percent to Taiwan, 42.2 percent to Vietnam and 38.9 percent to the EU. The strong semiconductor performance, in particular, pushed Taiwan past Vietnam to become South Korea's third-largest export destination. According to the Korea International Trade Association, semiconductors account for about 70 percent of all exports to Taiwan. The top three destinations — China, the United States and Taiwan — together accounted for 51.9 percent of total exports.

Imports rose 20.7 percent from a year earlier to $24.61 billion. By item, imports of semiconductors increased 91.5 percent, crude oil 3.5 percent, semiconductor manufacturing equipment 44.8 percent and passenger cars 70.9 percent. Meanwhile, imports of machinery fell 2.7 percent, gas 9.7 percent and petroleum products 38.4 percent.

Energy imports — crude oil, gas and coal combined — rose 1.5 percent. By country, imports from China increased 50 percent, from the United States 17.3 percent, from the EU 6.5 percent and from Japan 39.8 percent, while imports from Australia fell 0.7 percent.

With exports outpacing imports, the trade balance posted a surplus of $10.37 billion, the largest on record for the Sept. 1-10 period. From January through Sept. 10, the trade surplus totaled $212.99 billion, also a record high.