How Did South Korea's Exports Reach a Record High in Q3 From Strong Chip Performance?
Click to start listening
Synopsis
In an impressive turn of events, South Korea's exports have soared to a record high in Q3, propelled by a significant increase in semiconductor shipments. Discover how the booming AI sector influences this remarkable achievement.
Key Takeaways
- Record exports reached $185 billion in Q3.
- Strong semiconductor shipments fueled growth.
- Exports from large corporations rose to $122.3 billion.
- Medium-sized companies achieved a new quarterly high of $32.3 billion.
- Automobile exports saw mixed results, with growth in Europe.
Seoul, Nov 10 (NationPress) South Korea's exports have achieved an unprecedented peak in the third quarter, primarily fueled by strong semiconductor shipments, as per government statistics released on Monday. This surge comes amid a super cycle in the chip industry, significantly driven by advancements in the artificial intelligence (AI) sector.
For the period spanning July to September, outbound shipments totaled $185 billion, marking a 6.5 percent increase compared to the same timeframe last year, according to the Ministry of Data and Statistics. This figure represents the highest quarterly export total since the ministry began documenting such data in 2010.
The growth also signifies the second consecutive quarter of year-on-year escalation, following a 2.1 percent rise in the previous quarter, as reported by Yonhap news agency.
A ministry official noted, “Despite ongoing South Korea-U.S. tariff negotiations potentially impacting exports during the third quarter, the significant semiconductor shipments were the core driver of overall export growth.”
In late October, Seoul and Washington finalized a long-awaited agreement regarding the specifics of Seoul's $350 billion commitment made in exchange for reduced U.S. tariffs during discussions between President Lee Jae Myung and U.S. President Donald Trump.
The number of exporting companies experienced a 4.5 percent year-on-year increase, reaching 69,808 in the third quarter.
When analyzed by product type, the outbound shipment of capital goods, spearheaded by semiconductors, saw an 11.2 percent year-on-year boost to $111 billion, according to the data.
Consumer goods, particularly automobiles, rose 4.9 percent year-on-year to $23.9 billion, thereby ending a streak of four consecutive quarters of decline.
Although automobile exports to the United States and China decreased in the third quarter, shipments to Europe surged due to strong demand for electric vehicles, as per the ministry’s report.
In terms of business size, exports from large corporations climbed 5.1 percent year-on-year to $122.3 billion, the highest amount recorded since the ministry started tracking such data in 2015.
Medium-sized firms also reported a 7 percent year-on-year increase in exports, achieving a new quarterly high of $32.3 billion.
The ministry highlighted that the surge in semiconductor exports primarily drove large companies, while the growth in semiconductor components and equipment contributed to the success of medium-sized firms' exports.
Point of View
It is essential to acknowledge South Korea's remarkable export achievements amid global challenges. The resilience shown by various sectors, particularly semiconductors, highlights the nation’s capacity for innovation and growth. Continued efforts to navigate international trade dynamics will be critical for sustaining this momentum.
NationPress
10/11/2025
Frequently Asked Questions
What drove the increase in South Korea's exports?
The increase was primarily driven by strong shipments of semiconductors amid a super cycle in the chip industry, bolstered by advancements in the AI sector.
How much did South Korea's exports increase in Q3?
South Korea's exports increased by 6.5 percent year-on-year, reaching a total of $185 billion in the third quarter.
What was the impact of tariffs on exports?
Despite unresolved South Korea-U.S. tariff negotiations potentially impacting exports, strong semiconductor shipments led to overall export growth.
How did medium-sized companies perform in exports?
Medium-sized companies saw a 7 percent year-on-year increase in exports, reaching a new quarterly high of $32.3 billion.
Which sectors contributed to the export growth?
The capital goods sector, led by semiconductors, and consumer goods, particularly automobiles, contributed significantly to the export growth.
