South Korea’s exports remain resilient as AI boom fuels chips demand

South Korea’s exports extended their strong run in June, highlighting the durability of the semiconductor boom that is underpinning growth.

Exports adjusted for working-day differences climbed 59.5% in June from a year earlier, the customs office said Wednesday. Imports increased 30.1%, resulting in a trade surplus of $36.1 billion. On an unadjusted basis, shipments increased 70.9%, compared with a revised 53.4% advance for the full month of May.

Semiconductors again led gains, supported by robust investment tied to AI and data centres. Chip shipments surged 199.5% from a year earlier to $44.8 billion. Exports of computer-related products and petroleum products also increased 308.8% and 49.8%, respectively.

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The latest figures suggest South Korea’s export-driven expansion remains intact, with strong semiconductor demand powering economic growth this year, helping offset weakness across more traditional industries.

The data also support the Bank of Korea’s increasingly hawkish stance. Policymakers have argued that stronger growth, persistent inflation, a weak currency and soaring home prices are increasingly pointing toward higher interest rates. Policymakers next set policy on July 16.

Governor Shin Hyun Song has said the semiconductor boom is spilling into broader consumption, investment and wage growth, raising the risk that inflation pressures could become more entrenched.