South Korea's export performance in early July maintained a robust growth trajectory, driven by sustained demand for semiconductors fueled by the artificial intelligence sector.
Data released by the Korea Customs Service on Tuesday revealed that exports during the first 20 days of July, adjusted for working days, surged by 62.9% year-on-year, marking the highest figure for the corresponding period in any July on record. This growth accelerated from the 49.7% increase seen in the same period last month.
On an unadjusted basis, exports rose 52.3% compared to the previous year, while imports increased by 20%, resulting in a trade surplus of $12.2 billion.
The figures highlight the resilience of South Korea's external demand, underpinned by ongoing investments in 人工智能 and data centers. Semiconductors continue to serve as the core engine for the nation's exports and overall economic growth, partially offsetting negative impacts stemming from geopolitical tensions in the Middle East.
Exports of chips soared by 180.6% year-on-year, while shipments of computer-related products jumped nearly 232%. Fuel exports rose by 33.4%. In contrast, automobile exports declined by 10.6%.
The strong trade data validates the Bank of Korea's decision last week to raise interest rates for the first time in over three years. The monetary policy board unanimously increased the benchmark interest rate by 25 basis points to 2.75%, signaling a continued tightening stance. The central bank noted that current inflation remains above its policy target and that economic growth is likely to exceed its previous forecasts.
The South Korean government recently revised its 2026 economic growth projection upward from 2% to 3%, a figure higher than the forecasts from both the Bank of Korea and the International Monetary Fund.
Bank of Korea Governor Shin Seong-soon stated that the central bank would significantly raise its growth forecast for this year and acknowledged the possibility of policy adjustments in several upcoming rate-setting meetings.
Governor Shin also pointed out that the boom in the chip industry is gradually spreading to consumption, investment, and wages. This diffusion suggests that inflationary pressures may extend beyond the technology sector, posing a risk of becoming more persistent.
Analyzing exports by destination, shipments to China surged 94.1% year-on-year, while exports to the United States increased by nearly 40%. Exports to Vietnam and the European Union also remained strong, reflecting robust market demand for semiconductors and various 人工智能-related products.
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