According to the Ministry of Trade, Industry and Energy and the Korea Customs Service, exports in May totaled $87.7 billion, a 53.2% increase from the previous year. This marks the highest monthly export figure on record, with exports surpassing $80 billion for three consecutive months. The average daily export amount, adjusted for working days, reached $4.28 billion, exceeding $4 billion for the first time, surpassing the previous record set in March at $3.79 billion.
The robust performance of semiconductor exports played a significant role in this growth. In May, semiconductor exports soared to $37.16 billion, a staggering 169.4% increase compared to last year, marking an all-time high. This growth is attributed to a steady increase in volume and rising fixed memory prices driven by increased capital investment from major U.S. tech companies.
Exports of non-semiconductor items also saw a 16% increase. Computer exports surged by 290.7% to $4.18 billion, driven by demand for SSDs for artificial intelligence servers, while wireless communication device exports rose by 12.6% to $1.46 billion, buoyed by strong sales of new products.
Consumer goods exports also showed solid growth. Cosmetic exports reached $1.18 billion, a 24.2% increase from last year, setting a record for May. Agricultural and fishery product exports rose by 4.7% to $1.07 billion. The export value of petroleum products surged by 46.6% to $5.25 billion, driven by high export prices due to rising oil prices. Petrochemical product exports increased by 11.1% to $3.7 billion.
Kang Gam-chan, head of the Trade and Investment Promotion Division at the Ministry of Trade, stated, "While semiconductor exports are leading the current export situation, other items are also performing well. Even excluding semiconductors and computers, we see a 9.5% increase, which is a significant figure in itself, despite the high growth rate of semiconductors."
With exports exceeding imports, the trade surplus for May reached $26.95 billion, an increase of $20.03 billion from the previous year. This marks the 16th consecutive month of trade surpluses. The cumulative trade surplus from January to May stands at $101.91 billion, surpassing the annual record of $95.2 billion set in 2017.
As South Korea's exports remain strong, optimistic projections for this year's trade continue. The Bank of Korea recently forecasted that exports could reach $952 billion this year. The Korea Institute for Industrial Economics and Trade also raised its export forecast to $924.4 billion, representing increases of 34.2% and 30.3% respectively from last year.
Some analysts predict that buoyant semiconductor exports could push South Korea's exports beyond the $1 trillion mark this year. Meritz Securities recently estimated that exports could reach $1.02 trillion, a 44.2% increase from last year. If exports exceed $1 trillion, South Korea could move from being among the world's top five exporters to potentially challenging the top four. Last year, only China, the United States, and Germany surpassed the $1 trillion export threshold.
Kang noted, "If the current trend continues, we could approach or even exceed the forecasts provided by the Bank of Korea and the Korea Institute for Industrial Economics and Trade. With an optimistic outlook, achieving $1 trillion in annual exports is not an impossible target. Factors such as potential further increases in semiconductor prices, the sustainability of high oil prices, and protectionist measures from the U.S. and the European Union will be crucial for achieving this goal."
* This article has been translated by AI.
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