Key facts
- South Korea's September exports reached a record $120.9 billion, an 83.5% increase year-on-year.
- Semiconductor exports surged 263% year-on-year to $60.3 billion.
- Imports rose 26% to $71.09 billion.
- The monthly trade surplus was $49.85 billion, a record high.
- Factory activity grew at the strongest pace in four months in September.
- New export orders increased at the fastest pace since March 2011.
South Korea's exports in September reached an all-time monthly record of $120.9 billion, marking an 83.5% increase from the previous year, according to data released by the Ministry of Trade, Industry and Energy. This performance significantly surpassed market expectations.
The surge was primarily driven by a historic peak in semiconductor exports, which climbed 263% year-on-year to $60.3 billion. This growth is attributed to increased global demand for memory chips and their role in the build-out of artificial intelligence infrastructure. Both export volumes and prices for semiconductors saw continued rises.
Imports for the month increased by 26% year-on-year to $71.09 billion. This resulted in a provisional trade surplus of $49.85 billion, a record monthly surplus that exceeded $40 billion for the first time.
Separately, South Korea's factory activity grew in September at the strongest pace in four months, with export demand hitting the fastest pace in 15-1/2 years, according to a survey by S&P Global. The purchasing managers index (PMI) stood at 53.9 in September, up from 52.3 in August. Both new orders and production growth hit their highest levels in about five-and-a-half years, with anecdotal evidence often linking the expansions to the combined strength of the semiconductor and automotive sectors. Manufacturers' optimism for the year ahead improved to an eight-month high.