South Korea’s exports surged in June at the fastest pace in nearly half a century, driven by a global artificial intelligence investment boom that supercharged semiconductor demand and pushed trade figures well above expectations.
Preliminary trade data released on Wednesday showed exports from Asia’s fourth-largest economy jumped 70.9% in June from a year earlier to $102.25 billion. That marked a sharp acceleration from May’s 53.4% increase and the strongest year-on-year growth since October 1978.
The reading also came in well above economists’ forecast of a 61.0% rise in a Reuters poll, with all 13 projections beaten.
Semiconductors were the main driver, with chip exports soaring 199.5% to $44.8 billion. The surge made South Korea only the fourth country globally to exceed $100 billion in monthly exports, alongside Germany, China and the United States, according to the trade ministry.
Home to major chipmakers Samsung Electronics and SK Hynix, South Korea has seen exports climb steadily since June 2025, with double-digit growth taking hold from December as global AI investment lifted memory chip prices.
“In June, computer sales also rose 308.8% on increasing AI investment by major technology firms, while steel products snapped 13 months of decline to rise 9.6% on data centre construction. Petroleum products rose 49.8% on high oil prices,” the data showed.
By destination, shipments to China rose 92.1% while exports to the United States climbed 78.6%. Sales to the European Union increased 31.8%, although exports to the Middle East fell 8.4%.
Imports rose 30.1% to $66.10 billion, the fastest pace since May 2022 and above expectations for a 26.3% increase.
The country posted a trade surplus of $36.15 billion for the month, the largest on record. That brought the first-half surplus to $138.3 billion, already far exceeding the $77.4 billion recorded for all of 2025.
Economists say momentum is likely to remain supported by semiconductor demand, although some caution that growth rates may be nearing a peak as the AI-driven cycle matures.
A separate survey on Wednesday also showed South Korea’s factory activity expanded for a seventh straight month in June, though at a slower pace due to weaker export demand.
