South Korea’s exports continued to rise for the fourth consecutive month in January, driven by a surge in semiconductor shipments, according to data released by the Ministry of Trade, Industry, and Energy. Outbound shipments increased by 18 percent year-on-year to reach $54.6 billion, while imports fell by 7.8 percent to $54.3 billion, resulting in a trade surplus of $300 million.
The sharp increase in exports of chips played a significant role in the overall growth. Chip exports rose by 56.2 percent year-on-year in January, reaching $9.37 billion. This marks the highest increase in chip exports since December 2017. The recovery can be attributed to improved overseas prices following the reduction in production by major memory chip producers. Furthermore, the growing demand for high-end memory chips in mobile devices and the artificial intelligence sector contributed to the sector’s robust performance.
Exports of automobiles also saw significant growth, expanding for the 19th consecutive month with a 24.8 percent increase to $6.2 billion. This surge was mainly driven by the rising demand for eco-friendly cars in the United States and Europe. Additionally, exports of machinery products rose by 14.5 percent to $4.4 billion, fueled by demand from the US and Southeast Asia. Display products also saw a 2.1 percent increase in exports, reaching $1.3 billion, driven by demand from the TV sector.
Exports of ships experienced substantial growth as well, increasing by 76 percent to $2.5 billion. This was led by the container and liquefied natural gas carriers.
Regarding export destinations, South Korea’s exports to China, its top trading partner, rose by 16.1 percent year-on-year to $10.7 billion, marking the first growth since May 2022. The recovery can be attributed to gains in chip and computer exports, which offset weaker demand for petrochemical products in China. Shipments to the United States also expanded for the sixth consecutive month, reaching $10.2 billion, up 26.9 percent year-on-year. This growth was driven by exports of cars, machinery, and computers. Shipments to Southeast Asia and Japan also saw increases of 5.8 percent and 10.6 percent, respectively.
South Korea’s exports, considered a vital driver of economic growth, rebounded in October 2023 after 13 months of year-on-year decline. Industry Minister Ahn Duk-geun expressed optimism about the recovery, stating that all four aspects of exports have aligned as the country enters 2024. He emphasized the government’s commitment to supporting exports amid global monetary tightening moves and the restructuring of the global supply chain due to the US-China competition.
Overall, South Korea’s export growth in January showcased the resilience of its semiconductor industry and the increasing demand for its products in various sectors. With favorable market conditions and government support, the country aims to sustain its export growth momentum throughout the year.
