Seoul, Jan 1 (NationPress) In 2025, South Korea's exports soared to an unprecedented $709.7 billion, marking the first time the nation has exceeded the $700 billion threshold, according to data released by the government on Thursday.

This represents a 3.8 percent increase in annual exports compared to the previous year, with exports of semiconductors witnessing a remarkable 22.2 percent surge year-on-year, reaching an all-time high of $173.4 billion, fueled by the burgeoning field of artificial intelligence (AI), as reported by the Ministry of Trade, Industry and Resources, per Yonhap news agency.

Meanwhile, imports experienced a slight decline of 0.02 percent, totaling $631.7 billion in 2025, which led to the largest trade surplus since 2017, amounting to $78 billion.

The ministry highlighted that the historic export figures from last year were supported by the strong performance of vital export categories like semiconductors, automobiles, and ships, along with the expansion of smaller sectors such as agro-fisheries and cosmetics.

Furthermore, the diversification of export markets was evident last year. While shipments to the United States and China saw a decline due to rising trade protectionism, exports to the Association of Southeast Asian Nations (ASEAN), Latin America, and the Commonwealth of Independent States (CIS) increased, as noted by the ministry.

In terms of individual items, semiconductor exports reached a historic $173.4 billion, attributed to a substantial rise in the average price of memory chips amid ongoing high demand from AI data centers.

Car exports also saw an increase of 1.7 percent, totaling $72 billion, despite impacts from U.S. tariffs.

While shipments to the world's largest economy decreased due to tariffs, exports to the European Union (EU) and the CIS grew, spurred by demand for hybrid and used vehicles.

Exports in the biohealth sector increased by 7.9 percent to $16.3 billion, while shipments of ships and computers rose by 24.9 percent and 4.5 percent, respectively, totaling $32 billion and $13.8 billion.

Importantly, exports of agro-fisheries products rose by 6 percent to $12.4 billion, and cosmetics exports surged by 11.8 percent to $11.4 billion, propelled by the global popularity of Korean culture.

Conversely, exports of petrochemical products and steel fell by 11.4 percent and 9 percent, respectively, to $42.5 billion and $30.3 billion, mainly due to global oversupply.

Regarding export destinations, shipments to the U.S. dropped by 3.8 percent to $122.9 billion in 2025, as exports of automobiles, auto parts, machinery, and other goods decreased following the tariff policies of the Donald Trump administration. South Korea's trade surplus with the U.S. fell by $6.1 billion from the previous year to $49.5 billion.

Similarly, exports to China decreased by 1.7 percent to $130.8 billion, influenced by lower demand for petrochemical products, wireless communication devices, and machinery.

On the contrary, shipments to ASEAN grew by 7.4 percent to $122.5 billion, primarily due to semiconductor exports, while exports to the EU increased by 3 percent to $70.1 billion, driven by strong demand for automobiles and ships.

Exports to the CIS surged by 18.6 percent to $13.7 billion, and exports to India climbed by 2.9 percent to a record $19.2 billion.

Additionally, exports to the Middle East rose by 3.8 percent to $20.4 billion, marking the fifth consecutive year of increase, while exports to Latin America grew by 6.9 percent to $31 billion.

In December, outbound shipments increased by 13.4 percent year-on-year to $69.6 billion, extending a winning streak to 11 consecutive months. Imports rose by 4.6 percent to $57.4 billion, resulting in a trade surplus of $12.2 billion, according to the ministry.