Korea's Kim Says US$1 Trillion Annual Exports Certain in November as October Shipments Nearly Double

South Korea’s Industry Minister Kim Jung-kwan said annual exports are set to cross US$1 trillion this month after October shipments rose 93.7% year on year to US$115.28 billion, Reuters reported, citing the trade ministry. With exports holding above US$110 billion, Kim said “it is becoming certain” the milestone will be reached within November.

According to Reuters, October’s gain was the sharpest since January 1974 and slightly beat the 93.2% median forecast in a Reuters poll of economists. Reaching US$1 trillion in a year would make South Korea the fourth country to do so, after the US, China and Germany, the news agency said. Exports for January to October totalled US$930 billion, up 60.6%, the first time the cumulative figure has passed US$900 billion, The Herald Business reported.

Chips drive the surge

Semiconductor exports jumped 259.4% to US$56.44 billion, accounting for 49% of October’s total, according to The Herald Business. Reuters said prices and volumes stayed high on continued facility investment by global big tech firms, while computer sales rose 496.6% on server demand for AI services.

Kim credited demand for advanced industries such as chips amid AI sector growth, as well as “the efforts of Korean companies that have remained competitive in global markets”, The Herald Business reported.

Other products also grew. Yonhap, via The Korea Times, said petroleum product exports rose 80% to US$6.92 billion, automobiles climbed 18.1% to US$6.55 billion on overseas demand for gasoline hybrids, petrochemicals gained 27.5% to US$4 billion and cosmetics rose 57.5% to US$1.44 billion.

By destination, shipments to China rose 133.6% to US$26.98 billion and those to the US rose 185.8% to US$24.9 billion. Exports to Southeast Asia rose 128% to US$21.33 billion and to the EU 56.4% to US$8.1 billion, Yonhap reported.

Part of the jump reflects calendar effects. October had 22 working days, two more than a year earlier when the Chuseok holiday fell in October, The Herald Business said. Average daily exports rose 76.1% to US$5.24 billion.

Imports and trade balance

Imports rose 36.0% to US$72.78 billion, driven by higher crude oil prices, chipmaking equipment and automobiles, Reuters said. That left a trade surplus of US$42.50 billion, narrower than September’s record US$49.97 billion.

What’s next

The ministry projected that annual exports will pass US$1 trillion in November if the trend holds, The Herald Business reported. Kim also warned that many small and medium-sized firms still face difficulties amid “rising protectionism in major economies”, shifting supply chains and Middle East tensions, according to Yonhap. He said the government will step up trade cooperation with major partners and work to remove export barriers so smaller firms can share in the gains.

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