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South Korea exports jump 47% as chip demand surges
South Korea’s exports grew in early February, driven by strong semiconductor demand amid ongoing trade uncertainties, according to customs data.
Exports for the first 20 days of February increased 47.3% year-on-year on a working-day adjusted basis, following a revised 34% rise in January.
Shipments rose 23.5% unadjusted, with imports up 11.7%, resulting in a trade surplus of US$5 billion. Semiconductor exports surged 134%, supported by investment in AI and data centers.
Despite trade policy uncertainties, Korea’s export momentum appears supported by the global AI cycle, which may offset sector-specific weaknesses.
Exports to China increased nearly 31%, while shipments to the US grew 22%, and exports to the EU and Taiwan rose 11.4% and 76.4%, respectively.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
South Korea’s export boom ties to an AI-led memory upswing, yet the data does not name HBM
- Semiconductor exports jumped 134%, driven by AI and data-center orders. Customs figures do not separate high-bandwidth memory (HBM) from other chips 1.
- High-bandwidth memory feeds AI accelerators. Samsung Electronics and SK hynix rank among three global leaders in advanced DRAM and high-bandwidth memory 1.
- The squeeze on supply has led to a “supernormal profit environment.” Analysts see a record gap between supply and demand, which lets suppliers push prices higher 2.
- Investors have chased the theme. Since early September, SK hynix shares have about tripled and Samsung has gained about 130% 2.
US trade policy creates a two-track world for Korean exporters
- Chip shipments rise while autos and parts slip. US tariffs can land unevenly across products, rather than stemming only from broad trade-policy uncertainty.
- Automotive goods face wide tariffs. The US also applies a 25% duty to certain advanced computing chips and some derivative products, with many exemptions 3.
- The rules spare chips imported for US data centers, research and development, or startups. That carve-out shields much of the US AI buildout 3.
- The result is a split market. A Korean memory supplier can meet lighter barriers while a Korean automaker faces steeper costs in the US.
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