How Did ICT Exports in South Korea Rise 12% in October Due to AI Server Chips?
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Synopsis
South Korea's ICT exports surged by 12.2% in October, primarily driven by a demand for AI server chips. This substantial increase highlights the nation's position in the global tech landscape and its growing influence in the semiconductor market. Read on to discover more about the implications of this trend.
Key Takeaways
- ICT exports rose by 12.2% in October 2023.
- Semiconductors for AI servers drove the export increase.
- Imports fell by 2.9%, leading to a trade surplus.
- Strong demand from Vietnam and India for communication equipment.
- KOSPI increased by 19.9% in October.
Seoul, Nov 13 (NationPress) South Korea's exports of information and communication technology (ICT) products experienced a remarkable increase of 12.2 percent in October compared to the previous year, according to data released on Thursday. This surge was primarily attributed to strong shipments of semiconductors for artificial intelligence (AI) servers.
The total value of outbound shipments of ICT products reached US$23.3 billion last month, marking a record high for any October, as reported by Yonhap news agency.
In contrast, imports saw a decline of 2.9 percent during the same period, amounting to $12.9 billion, leading to a favorable trade surplus of $10.3 billion.
Specifically, exports of semiconductor products surged by 25.4 percent year-on-year, driven by robust demand for advanced chips utilized in AI servers, along with a rise in global memory chip prices.
Furthermore, exports of communication equipment increased by 2.5 percent, thanks to strong demand from Vietnam and India, as noted by the ministry.
However, shipments of display products declined by 8.8 percent, influenced by decreasing global prices. Additionally, exports of mobile phones dropped by 11.8 percent amid weakened demand for components from China.
Regionally, exports to the United States rose by 5.8 percent, while those to China, including Hong Kong, increased by 4.9 percent.
On a different note, foreign investors remained net buyers of South Korean securities in October, reflecting a buoyant stock market, although their net purchases decreased from the previous month due to profit-taking, according to data from the central bank released on Thursday.
Offshore investors acquired a net total of US$2.29 billion in local stocks and bonds last month, following $9.12 billion in net purchases in September, based on data from the Bank of Korea (BOK).
In terms of asset types, foreigners purchased a net $3.02 billion in local stocks, extending their buying trend to six consecutive months, while they sold a net $720 million in bonds, a shift from $4.78 billion net buying the previous month.
“Stock-related funds recorded a net inflow for the sixth consecutive month, buoyed by strong global investment sentiment towards artificial intelligence (AI), although growth has slowed due to profit-taking after recent stock gains,” stated a BOK official.
“Conversely, bond funds experienced a net outflow as public institutions continued to liquidate short-term bonds,” he added.
In October alone, the Korea Composite Stock Price Index (KOSPI) soared by 19.9 percent. The data also indicated that the Korean won depreciated significantly against the U.S. dollar in October, averaging 1,424.4 won compared to 1,402.9 won in September.
Daily fluctuations in the won-dollar exchange rate widened, averaging 5.6 won in October, compared to 3.9 won the previous month, as the data illustrated.
Point of View
It is crucial to recognize South Korea's significant advancements in the ICT sector. The 12.2% increase in exports showcases the country's strength and adaptability in a rapidly changing global market. The focus on AI technology is a testament to South Korea's commitment to innovation and leadership in the technology space.
NationPress
13/11/2025
Frequently Asked Questions
What contributed to the rise in South Korea's ICT exports?
The rise in South Korea's ICT exports was largely driven by strong shipments of semiconductors for artificial intelligence (AI) servers, with exports of semiconductor products increasing by 25.4 percent year-on-year.
How did imports change in October?
In October, South Korea's imports fell by 2.9 percent compared to the previous year, amounting to $12.9 billion, which contributed to a trade surplus of $10.3 billion.
Which countries showed increased demand for communication equipment?
The demand for communication equipment increased by 2.5 percent, primarily driven by robust orders from Vietnam and India.
What was the performance of the KOSPI in October?
In October, the Korea Composite Stock Price Index (KOSPI) rose by 19.9 percent, reflecting positive investor sentiment in the stock market.
What trends were observed in foreign investment in South Korea?
Foreign investors continued to be net buyers of South Korean securities in October, with net purchases totaling $2.29 billion, although this was a decrease from the previous month due to profit-taking.
