Seoul: South Korea's monthly exports surged to their second highest level ever, increasing nearly 63 percent in July compared to the previous year, driven by strong global demand for memory chips. Outbound shipments amounted to US$98.89 billion for the month, as reported by the Ministry of Trade, Industry and Resources. This figure was just shy of the record $102.2 billion achieved in June.
According to Yonhap News Agency, imports rose by 26.5 percent year-on-year to $68.56 billion, resulting in a trade surplus of $30.32 billion. The semiconductor sector, a cornerstone of Asia's fourth-largest economy, saw exports rise by 179 percent to $41 billion during this period, owing to the high global prices for memory products and increased demand from artificial intelligence (AI) data centers.
The industry ministry noted, "The popularization of AI technology, with the industry entering the era of agentic AI, continued to drive demand for memory chips used in servers. Prices for both DRAM and NAND also continued to rise." Notably, the semiconductor export figure surpassed $40 billion for two consecutive months.
Excluding semiconductors, South Korea's total exports rose by 26 percent year-on-year in July. Automobile exports increased by 7 percent to $6.2 billion, supported by global demand for hybrid and other eco-friendly models. Meanwhile, petroleum product exports jumped 34.1 percent to $5.68 billion, and petrochemical product exports rose 10.3 percent to $4.18 billion.
The industry ministry explained that while the volume of petroleum product exports declined due to government efforts to stabilize domestic supply, uncertainties in the Middle East pushed oil prices higher, boosting export value. Mobile device exports climbed 51 percent to $1.81 billion, with premium smartphones like the Galaxy S26 lineup showing solid sales despite rising chip-driven production costs. However, home appliance exports decreased by 4.1 percent to $600 million, largely due to reduced demand from the United States amidst a housing market slowdown.
By destination, exports to China nearly doubled to $21.68 billion, fueled by strong shipments of chips, nonferrous metal products, and petroleum goods. Exports to the United States surged 68.7 percent to $17.4 billion, driven by AI data center investment projects from major high-tech companies. Shipments to Southeast Asia grew 73.7 percent to $18.8 billion, supported by strong semiconductor, display, and ship exports, while exports to the European Union increased by 55.7 percent to $9.38 billion due to robust shipments across various products.
Industry Minister Kim Jung-kwan highlighted the performance, stating, "Amid the strong performance of semiconductors, 19 of the country's 20 major export categories posted gains." He also emphasized South Korea's success in diversifying its export portfolio. Nonetheless, Kim acknowledged that the country's exports face challenges from growing protectionism in major economies and ongoing geopolitical issues in the Middle East.
"The government will closely monitor market conditions for major export products and utilize all available policy measures to help South Korean businesses respond to changes in the global trade environment, including tariffs and non-tariff barriers," Kim added.