South Korea's semiconductor exports have maintained a strong upward trend. Data released on February 23 shows that in the first 20 days of February, chip exports surged by 134% compared to the same period last year, driven by investments in artificial intelligence and data centers.
On the same day, the South Korean stock market experienced a significant rally. During trading, the Korea Composite Stock Price Index (KOSPI) rose by over 2% at one point, reaching a new all-time high. Semiconductor stocks led the gains, with Samsung Electronics and SK Hynix both hitting record highs.
Despite ongoing trade uncertainties stemming from US tariff policies, robust chip demand continues to propel South Korea's export growth in February. According to data from Korean customs, exports for the first 20 days of the month, adjusted for calendar differences, increased by 47.3% year-on-year, surpassing the revised growth rate of 34% for the entire month of January. On an unadjusted basis, exports rose by 23.5%, while imports grew by 11.7%, resulting in a trade surplus of $4.95 billion.
Bloomberg noted that despite fewer working days due to the three-day Lunar New Year holiday falling within the reporting period, South Korea's overall February trade data remained strong, indicating vigorous export momentum even after accounting for calendar effects.
Boosted by AI and data center investments, semiconductor exports for the first 20 days of February skyrocketed by 134% year-on-year, continuing their powerful ascent. Exports of computer peripherals increased by 129%, and petrochemical product exports grew by 11%. In contrast, automobile exports fell by nearly 27%, and auto parts exports declined by approximately 21%, reflecting the automotive industry's ongoing adjustments under US tariff policies.
Earlier data released on February 1 by South Korea's Ministry of Trade, Industry and Energy showed that January exports reached $65.85 billion, a record high for the month and a 33.9% increase year-on-year. Semiconductor exports played a key role, surging 103% to $20.5 billion and exceeding $20 billion for the second consecutive month, thereby boosting the overall export figure. January imports rose by 11.7% to $57.1 billion, resulting in a trade surplus of $8.7 billion. This marks the 12th consecutive month of trade surplus.
These figures indicate that South Korea's export engine continues to be supported by the global AI cycle, which helps cushion weakness in other sectors. The Director-General of the World Trade Organization stated last month that the rapid development of AI is expected to support global merchandise trade this year, helping to offset pressures from US tariffs.
Led by technology and automotive stocks, the South Korean stock market showed significant strength. During the session, the KOSPI index's gains exceeded 2%, setting a new historic peak. Since the beginning of the year, the KOSPI has accumulated a gain of over 40%.
Semiconductor stocks rallied across the board. Samsung Electronics saw its shares rise more than 3% intraday, again reaching a record high, while SK Hynix also advanced nearly 3% to a new peak. Automotive stocks also moved higher, with Hyundai Motor climbing over 4% at one point. Among other individual stocks, LG Electronics and Samsung Electro-Mechanics rose more than 10%, and LG Display gained over 5%.
By the time of writing, the KOSPI's gains had moderated to below 1%. Samsung Electronics was up nearly 2%, SK Hynix increased by 0.50%, and Hyundai Motor advanced by 2.80%, with gains in other stocks also narrowing.
The sustained upward trend and repeated new highs for Samsung Electronics and SK Hynix are linked to reports of rising memory chip prices. Recent foreign media reports indicate that Samsung Electronics is negotiating prices for its latest-generation AI memory chip, HBM4, which are expected to be 20-30% higher than the previous generation, at around $700. SK Hynix, which is also preparing to mass-produce HBM4, is anticipated to set prices at a similar level.
Charu Chanana, Chief Investment Strategist at Saxo Markets, commented that reports regarding Samsung's HBM4 again highlight the industry's "pricing power," suggesting that supply for AI memory chips remains tight.
Facing a surge in AI-driven demand for memory chips, South Korea's two memory giants, Samsung Electronics and SK Hynix, are accelerating the operational timelines for their new wafer fabrication plants. Their strategic focus has shifted from cautious inventory control to active capacity expansion to capitalize on the anticipated industry "super cycle."
SK Hynix plans to move the trial run of its first Yongin plant forward to February-March of next year, initiating operations ahead of the original completion date. Similarly, Samsung Electronics has brought forward the start of production at its Pyeongtaek P4 factory from the first quarter of next year to the fourth quarter of this year, advancing the schedule by approximately three months. Both companies will prioritize high-value-added products, such as high-performance DRAM and HBM (High Bandwidth Memory), on the new production lines.
Recently, the US Semiconductor Industry Association (SIA) stated that driven by continued expansion in AI-related investments, global semiconductor sales are expected to surpass the $1 trillion mark for the first time this year, maintaining the strong growth momentum seen in recent years. The SIA noted that global chip sales reached $791.7 billion in 2025, a significant increase of 25.6% from the previous year. As major global tech companies continue to invest hundreds of billions of dollars in expanding AI data centers, related demand is projected to further boost the chip market size this year.
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