Key Takeaways
1. Total exports for the year reached $640.2 billion, a 2.9% increase from last year, driven by semiconductor demand.
2. Semiconductors accounted for 28.3% of South Korea’s exports in November, up from around 10% in the 2000s.
3. Other major export sectors, including machinery and displays, saw a decline, with a total drop of 1.5% year-on-year.
4. Positive growth was noted in sectors like automobiles (2% increase), computers (0.4% increase), and ships (28.6% increase).
5. Chip exports are expected to continue growing into 2026, with strong demand from AI, benefiting companies like Samsung.
Total export figures for this year have hit $640.2 billion, marking a 2.9% increase compared to the same timeframe last year. The Ministry of Trade, Industry, and Resources of the country attributes this growth to the increasing demand for semiconductors driven by AI infrastructure.
Significant Semiconductor Contribution
In November, silicon components made up 28.3% of the East Asian nation’s exports. This is a significant rise from around 10% back in the 2000s.
Decline in Other Major Exports
South Korea’s recent reliance on chips is highlighted by the fact that combined exports from other key sectors dropped by 1.5% year-on-year, totaling $487.6 billion. Key industries like machinery saw a decline of 8.9 points, while displays fell by 10.3 points. Additionally, the export of petroleum products decreased by 11.1%, and petrochemicals saw an 11.7% shrinkage.
Growth in Other Sectors
On a more positive note, there were sectors that experienced growth, like automobiles, which increased by 2%, computers by 0.4%, and ships, which surged by 28.6%.
Deputy Trade Minister Kang Kam-chan forecasts that South Korea’s chip exports will keep growing into 2026, with AI demand remaining strong. Samsung is likely to gain from this trend, as its Device Solutions division is projected to achieve significant profits in 2025, fueled by the sharp increase in DRAM prices.
Yonhap News Agency
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