According to the Ministry of Trade, Industry and Energy, exports in May reached $87.75 billion (preliminary customs data), marking a 53.2% increase compared to the same month last year. This is the third consecutive month that exports have exceeded $80 billion since March.
Semiconductors were the primary driver of this export growth. Last month, semiconductor exports totaled $37.16 billion, a staggering 169.4% increase year-on-year, achieving the highest monthly performance on record. Semiconductors accounted for 42.3% of total exports, surpassing 40% for the first time.
The expansion of AI data center investments by major U.S. tech companies is cited as a key factor. Companies like Google, Microsoft, and Meta have aggressively built AI infrastructure, leading to a surge in demand for high-value semiconductors, particularly high-bandwidth memory (HBM). Additionally, the demand for SSDs for AI servers contributed to a 290.7% increase in computer exports, which reached $4.18 billion.
This export boom has also improved the trade balance. Cumulative exports from January to May totaled $394.23 billion, a 43.4% increase compared to the same period last year. During this time, the trade surplus reached a record $101.98 billion (cumulative), with exports exceeding $80 billion for three consecutive months.
There are discussions about the possibility of achieving $1 trillion in annual exports. The average monthly export amount up to May is approximately $79 billion. Although simple calculations suggest a total of $948 billion, sustained strong performance could make the $1 trillion target achievable.
Earlier, the Korea Institute for Industrial Economics and Trade (KIET) raised its annual export forecast to $924.4 billion, a 32% increase from its initial prediction of $697.1 billion.
The export surge has positively impacted business sentiment. According to the Bank of Korea's 'May 2026 Business Survey and Economic Sentiment Index (ESI)', the overall business sentiment index (CBSI) for all industries reached 98.9, the highest level since October 2022 (99.0). The month-on-month increase of 4.0 points is the largest since May 2023 (4.4 points).
The economic sentiment index (ESI) also rose to 97.5, up 5.8 points from the previous month. This improvement reflects enhanced perceptions among economic agents regarding the export growth and expectations for better semiconductor market conditions.
However, some experts caution against overly optimistic expectations for economic recovery. Uncertainties surrounding the situation in the Middle East persist, and rising prices for crude oil and liquefied natural gas (LNG) could increase production costs for businesses and exert upward pressure on inflation.
Increased exchange rate volatility is another concern. On June 5, the won-dollar exchange rate briefly surpassed 1,540 won, reaching its highest level since the global financial crisis. While a weaker won can enhance price competitiveness for exporters, it also raises costs for energy and raw material imports.
Experts note that while the export boom is improving business sentiment, it is premature to interpret this as an immediate signal of overall economic recovery. Lee Jeong-hee, a professor of economics at Chung-Ang University, stated, "It is true that the export boom is improving business sentiment, but it is still too early to interpret this as a signal for domestic economic recovery. The warmth of exports has not sufficiently spread to the domestic market."
She added, "With high oil prices, high exchange rates, and rising interest rate pressures, there is a possibility of a 'triple whammy' re-emerging. In the second half of the year, it will be crucial to implement policy responses that alleviate these burdens and support domestic recovery."
* This article has been translated by AI.
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