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AI Fuels South Korean Exports to Record Highs
29 Sep
Summary
- Exports likely rose for 16th consecutive month in September.
- Chip demand fueled by AI investments drove significant growth.
- A projected trade surplus of $38.15 billion was anticipated.
South Korea's exports were on track to achieve their 16th consecutive month of growth in September. This sustained increase was primarily driven by strong demand for semiconductors, fueled by significant investments in artificial intelligence.
While the annual growth rate for September was expected to moderate to 62.0% compared to August's 68.7%, analysts attributed this to a reduction in working days due to the Chuseok holidays. Before the holidays, exports in the first 20 days of September saw a notable surge, with semiconductor sales alone increasing by 259.4%.
The trend indicates a persistent boom in semiconductor exports, directly linked to ongoing AI hyper-scaler investments. This has contributed to consistent double-digit annual growth rates since December of the previous year.
Meanwhile, imports were projected to increase by 21.5% in September. The nation anticipated a record monthly trade surplus, reaching an estimated $38.15 billion, an increase from the previous month's surplus of $34.79 billion.
