South Korea's exports surged over 50% year-on-year last month, setting a new record. Despite uncertainties stemming from the Middle East conflict, semiconductor exports more than doubled, significantly contributing to the overall increase. The average daily export value also surpassed $4 billion for the first time, with the surplus for January to May exceeding last year's maximum figures.
According to the Ministry of Trade, Industry and Energy and the Korea Customs Service, May's export value reached $87.747 billion, a 53.2% increase from the previous year. This marks the highest monthly figure on record, with exports exceeding $80 billion for three consecutive months. South Korea has maintained a positive export trend for 12 consecutive months since June of last year.
The average daily export value, adjusted for working days, was $4.28 billion, the highest ever recorded, surpassing the previous peak of $3.79 billion in March.
The robust performance of semiconductor exports played a crucial role. Last month, semiconductor exports reached $37.16 billion, a staggering 169.4% increase year-on-year, marking an all-time high. This growth is attributed to rising fixed memory prices driven by increased AI-related investments by major U.S. tech companies, with exports exceeding $30 billion for three consecutive months.
Exports of computers and wireless communication devices also saw significant increases, with demand for SSDs for AI servers boosting computer exports by 290.7% to $4.18 billion, and wireless communication device exports rising 12.6% to $1.46 billion. Display exports increased by 9.4% to $1.47 billion, influenced by the launch of new mobile products.
Consumer goods exports also showed solid growth. Cosmetics exports reached $1.18 billion, up 24.2% from last year, achieving the highest May figure on record. Although agricultural and seafood product exports declined due to reduced shipments of items like coffee and seaweed, processed agricultural products such as noodles and bread increased, resulting in a 4.7% rise to $1.07 billion.
Petroleum product exports surged 46.6% to $5.25 billion, driven by high export prices due to rising oil prices. However, the implementation of price controls on petroleum products led to a 23.8% decrease in volume, with gasoline, diesel, and kerosene exports dropping by 31.1%, 24.3%, and 99.9%, respectively. Petrochemical product exports increased by 11.1% to $3.7 billion, although volume fell by 25.5% due to prioritizing domestic supply.
Exports of automobiles, a key export item, fell 5.9% to $5.83 billion, impacted by reduced working days, supply shortages due to industrial accidents, and logistics disruptions from the Middle East conflict.
Steel exports decreased by 2.1% to $2.04 billion, continuing the downward trend in key items like hot-rolled and plate steel. General machinery exports also fell 6.3% to $3.82 billion due to increased logistics costs from the Middle East conflict and U.S. tariffs. In contrast, non-ferrous metal exports rose 41.5% to $1.67 billion, driven by increased demand for copper and aluminum due to the expansion of AI data centers.
Exports to ASEAN countries reached $15.85 billion, up 58.4%, while exports to the European Union increased by 2.4% to $6.19 billion. However, exports to the Middle East, heavily impacted by the conflict, fell 7.7% to $1.27 billion, primarily due to declines in automobile and auto parts shipments.
Imports rose 20.8% to $60.8 billion, with energy imports increasing by 15.9% to $11.75 billion. Notably, crude oil imports rose 25.0% to $8.5 billion, despite a decrease in volume due to the Middle East conflict.
Non-energy imports increased by 22.0% to $49.05 billion, significantly influenced by a 71.0% rise in petroleum product imports to $2.55 billion and a 71.0% increase in semiconductor equipment imports to $2.56 billion.
With exports exceeding imports, May's trade surplus reached $26.95 billion, a $20.03 billion increase from the previous year. This marks the 16th consecutive month of surplus. The cumulative surplus for January to May stands at $101.91 billion, surpassing the previous record of $95.2 billion set in 2017.
Given the strong export performance, the government is increasingly optimistic about exceeding its annual export target. The Ministry of Trade set this year's export goal at $740 billion. However, with both the volume and prices of semiconductor exports on the rise, there are projections for significant growth in annual export figures.
From January to May, exports totaled $394.226 billion, nearly matching last year's total for the same period. The Korea Institute for Industrial Economics and Trade recently projected that this year's exports could increase by 30.3% to $924.4 billion, with a trade surplus of $219 billion.
Potential variables include the Middle East conflict and U.S. tariff policies. Minister of Trade, Industry and Energy Kim Jeong-kwan stated, "Uncertainties in the trade environment remain, including the outcome of the Middle East conflict, U.S. tariffs, and the EU's steel TRQ. The government will work closely with major countries to mitigate trade risks for our companies and create a stable export environment." He added that the government would actively support companies' production and export activities by ensuring stable imports of key raw materials and monitoring supply chains.
* This article has been translated by AI.
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