SEOUL: South Korea’s exports continued to surge in March as record semiconductor shipments driven by the artificial intelligence (AI) boom and demand from China helped cushion the economy even as external risks intensified amid the war in Iran.
The value of shipments adjusted for differences in the number of working days soared 41.9% from a year earlier, according to data released by the trade ministry.
Unadjusted exports rose 48.3%, compared with a revised 28.7% gain for the full month of February, while imports increased 13.2%, resulting in a trade surplus of US$25.74bil.
Semiconductors continued to power the overall increase, setting a fresh record of US$32.8bil in chip shipments.
That was a 151.4% jump from a year earlier, supported by sustained global investment in AI and data centres.
Shipments of autos, petroleum products and computers also increased, the trade ministry noted in a statement.
By destination, exports to the United States increased 47.1%, while the value of shipments to China climbed 64.2%, the largest jump since the aftermath of the global financial crisis.
Semiconductors and petroleum products topped the export list to China.
For now the data suggest South Korea’s export engine remains intact, despite mounting headwinds from surging energy prices and geopolitical uncertainty.
“Memory chip prices have softened recently, but remain elevated from a year earlier, supporting continued robust export growth,” said BNP Paribas economist Jeeho Yoon. “It’ll be crucial to keep a close eye on whether there’s a risk of a sharp drop in price momentum, and whether volumes can sustain solid growth.” — Bloomberg
