South Korea’s Korea Customs Service released its latest trade statistics on the 21st, showing exports from October 1 to 20 reached $61.612 billion (approximately NT$2 trillion), surging 105.4% from the same period last year and setting a record high for the period. The core driver of this explosive growth was semiconductors, with chip exports soaring 222.5% to $27.516 billion (approximately NT$890 billion) during the same period, also a record high for the period.
On a working-day-adjusted basis, average daily exports for the first 20 days of October reached $4.74 billion (approximately NT$150 billion), up 65.9% year-over-year and the highest level since records began. Imports during the same period rose 42.8% year-over-year to $47.117 billion (approximately NT$1.5 trillion), with a trade surplus of $14.496 billion (approximately NT$470 billion).
Semiconductors’ share of total exports jumped from 28.4% in the same period last year to 44.7%, a 16.2 percentage-point increase in one year, indicating that South Korea’s export structure is rapidly tilting toward chips. Global tech giants continue to expand AI data centers, driving strong demand for chips such as High Bandwidth Memory (HBM) and DRAM. As a major global memory supplier, South Korea has become a direct beneficiary of this AI infrastructure investment boom.
Notably, growth momentum was not limited to semiconductors. Computer peripheral equipment exports surged 424.0%, petroleum products rose 68.3% year-over-year to $3.94 billion (approximately NT$130 billion), automobile exports grew 40.9% to $3.35 billion (approximately NT$110 billion), and steel products also increased 42.6% to $2.58 billion (approximately NT$84 billion), with nearly all major categories posting gains.
Imports also reflected the strength of industrial expansion. Semiconductor imports reached $7.573 billion (approximately NT$250 billion), up 78.4% year-over-year, the largest import category by share; imports of semiconductor manufacturing equipment for capacity expansion reached $1.847 billion (approximately NT$60 billion), surging 93.4%, signaling that South Korean chipmakers are accelerating investment and expanding production lines.
By export destination, South Korea’s exports to China surged 154.4% to $16.6 billion (approximately NT$540 billion), and exports to the United States grew 154.9% to $10.7 billion (approximately NT$350 billion), with both major semiconductor demand markets more than doubling. Exports to Vietnam grew 74.6%, to the European Union 78.2%, and to Taiwan 36.7%, with demand strengthening across all major trading partners.
This momentum carried over from September. South Korea’s September exports rose 83.7% year-over-year, breaking the $120 billion (approximately NT$3.9 trillion) mark for the first time and posting the largest increase since February 1974. Cumulatively from the start of the year through October 20, South Korea’s total exports reached $876.3 billion (approximately NT$28.5 trillion), up 59.5% year-over-year, with a cumulative trade surplus of $266.9 billion (approximately NT$8.7 trillion). If the growth trend continues, South Korea’s full-year exports could surpass $1 trillion (approximately NT$32.5 trillion) for the first time in history.
South Korean Finance Minister Lee Hyung-il said last Saturday that the semiconductor industry’s boom will last at least through 2027. He noted that the chip sector is driving tax revenue growth, and South Korea’s tax revenue this year is expected to exceed earlier forecasts, with the overall fiscal position also becoming more robust due to the semiconductor upturn.
Market attention now turns to the Bank of Korea’s rate decision meeting on the 22nd. Economists widely expect the policy rate to remain unchanged at 3.00%, but another quarter-point hike to 3.25% remains possible in November. Jeeho Yoon, senior economist at BNP Paribas, analyzed that the semiconductor industry is leading South Korea’s strong economic expansion, and growth momentum may spill over into domestic demand, further increasing inflationary pressure, meaning the rate-hiking cycle has not yet come to an end.
From an industry chain perspective, the surge in South Korea’s memory exports confirms that demand for AI server and data center buildouts remains in a phase of rapid expansion. For Taiwanese investors, this data can serve as an important leading indicator for observing HBM and DRAM supply-demand dynamics and the AI capital expenditure cycle; however, semiconductors now account for nearly 45% of South Korea’s exports, a high concentration, meaning that if the pace of AI investment slows, the volatility of South Korea’s trade performance will also amplify accordingly.
Note: Amounts in the table are presented according to the conversion reference values provided in the source material and are for reference only.