Semiconductors carry half of exports as South Korea eyes $1tr milestone this month

South Korea's exports are on the verge of crossing the $1 trillion mark for the first time. October shipments reached $115.28 billion — the second-highest monthly total on record — pushing the cumulative figure for the year past $930 billion for the first time. Only $70 billion more is needed to hit the milestone. However, semiconductors accounted for roughly half of October's total, underscoring how the export boom remains concentrated in a single sector.

The Ministry of Trade, Industry and Energy said Sunday that October exports reached $115.28 billion, a 93.7 percent increase from the same month last year. The figure trails only September's all-time monthly record of $121.1 billion. The daily average export value, adjusted for working days, also rose 76.0 percent to $5.24 billion, marking the second consecutive month above $5 billion.

Cumulative exports from January through October reached $930 billion, already surpassing last year's full-year record of $709.3 billion. With $70 billion left to reach the annual $1 trillion threshold, the ministry said South Korea is on track to become only the fourth country in the world — after the United States, China and Germany — to achieve that milestone, and expects it to happen this month.

Semiconductors drove the surge. Semiconductor exports jumped 259.4 percent year-on-year to $56.44 billion in October, equivalent to about 49 percent of total exports. Sustained capital investment in AI infrastructure by global big-tech companies kept both chip prices and volumes elevated. The figure was also the second-highest monthly semiconductor export total on record, trailing only September.

Computer exports also posted strong gains, reaching $5.85 billion on the back of server infrastructure investment and rising demand for server-use solid-state drives. The year-on-year growth rate reached 496.6 percent.

Exports beyond semiconductors were broadly positive as well. Eighteen of the top 20 major export items posted increases. Automobile exports rose 18.1 percent to $6.55 billion, setting a record for the month of October, as the shift of the Chuseok holiday from October last year to September this year added working days, and hybrid vehicle exports performed strongly.

Cosmetics, agricultural and fishery products, and biotech-health products all set October records. Cosmetics exports rose 57.5 percent to $1.44 billion, agricultural and fishery products climbed 11.6 percent to $1.11 billion, and biotech-health exports grew 30.2 percent to $1.53 billion.

Petroleum product exports rose 80.0 percent to $6.92 billion, while petrochemical exports climbed 27.5 percent to $4 billion, both lifted by higher unit prices tied to elevated oil prices stemming from the prolonged Middle East war. Export volumes, however, fell — down 7.5 percent for petroleum products and 6.8 percent for petrochemicals. Shipbuilding exports dropped 43.6 percent to $2.64 billion, reflecting a high base from offshore plant exports in the same period last year.

By region, exports grew in seven of nine major markets. Exports to China surged 133.6 percent to $26.98 billion, driven by strong semiconductor and petrochemical demand, exceeding $20 billion for the fifth consecutive month. Exports to the United States climbed 185.8 percent to $24.9 billion on AI-related demand. Exports to ASEAN rose 128.0 percent to $21.33 billion, topping $20 billion for the second consecutive month.

October imports rose 36.0 percent to $72.78 billion. Energy imports climbed 63.1 percent to $16.49 billion, while non-energy imports increased 29.7 percent to $56.29 billion. The trade balance posted a surplus of $42.5 billion, exceeding $40 billion for the second consecutive month. The cumulative trade surplus for January through October reached $294.9 billion, an increase of $239.1 billion from the same period last year.

"October exports maintained solid growth of more than $110 billion, making it virtually certain that annual exports will reach $1 trillion in November," Minister of Trade, Industry and Energy Kim Jung-kwan said. "We will concentrate our policy efforts to ensure that small and mid-sized companies can broadly share in the gains from export growth."