South Korea's September Exports Hit Record High Driven by AI Demand

South Korea's exports reached a record high of $120.9 billion in September, marking a 104.9% increase year-on-year after adjusting for fewer working days. This surge was primarily driven by a global increase in demand for semiconductors, largely attributed to the booming artificial intelligence sector.

For the first nine months of the year, the country's total exports exceeded $814.5 billion, surpassing the $800 billion mark for the first time. Excluding the adjustment for working days, September exports still showed a strong 83.5% growth. Imports also rose by 26% during the month, leading to a trade surplus of nearly $50 billion.

The semiconductor industry was the main engine behind this export boom. Chip exports alone grew by 263% to $60.3 billion, while exports of computer products saw an even larger jump of 435%. Exports of petroleum products increased by 72%, contrasting with a 5% decrease in automobile exports.

Analysts suggest that while the pace of export growth may moderate in the coming quarter due to calendar effects and higher base comparisons, continued global AI investments and strong demand for high-bandwidth memory (HBM) chips are expected to provide ongoing support. The robust trade figures reinforce expectations that South Korea's economy can withstand higher interest rates.