SEOUL: South Korea’s exports extended their growth streak in January, underpinned by robust semiconductor demand and an increase in the number of working days from a year earlier because of the effects of a favourable calendar.
Unadjusted shipments rose 33.9% from a year earlier, according to data released last Sunday by the Trade Ministry.
The figure was likely distorted by the timing of the Lunar New Year holidays and compares with a 13% advance in December.
Imports increased 11.7%, resulting in a trade surplus of US$8.74bil.
On a working-day adjusted basis, January exports climbed 14%, offering a clearer picture of the underlying pace of growth.
Semiconductor exports remained the driving force of the increase, advancing 103% amid continued investment tied to artificial intelligence and data-centre expansion.
Gains in chips helped offset weakness in steel, shipments of which edged 0.3% higher as US tariffs and overseas production weighed on overseas sales.
Auto exports rose 22%, while wireless communication products posted a 67% increase, the ministry said.
Given the calendar effect, economists said average daily exports offered a more reliable gauge of momentum than the monthly headline figure.
Last year, the Lunar New Year took place in January, resulting in four fewer working days than in 2026, when the holidays will fall in February.
Even so, the data offer reassurance that South Korea’s export engine remains resilient in the face of a US tariff regime, following a trade agreement that capped duties on South Korean goods at 15%.
That tariff rate is still above levels seen before Donald Trump began his second term as US president, and fresh trade uncertainties have emerged.
Trump has threatened to raise tariffs on South Korean goods to 25%, citing what he described as the failure of the country’s legislature to codify last year’s trade deal, underscoring the fragility of the current agreement.
South Korea also faces financial concerns, with currency moves and inflation remaining key variables for policymakers. Consumer prices rose 2.3% in December, above the central bank’s 2% target, with officials pointing to earlier weakness in the won as a major driver of higher import costs.
On Jan 15 the Bank of Korea held its benchmark interest rate at 2.5% and effectively shifted to a neutral stance by removing language from its statement referencing a potential rate cut.
Furthermore, it cited lingering inflation pressures, currency volatility and household debt risks.
By destination, exports to China climbed 47%, while shipments to the United States rose 30%.
Shipments to the European Union increased 7%. — Bloomberg
