South Korea’s exports surged in May, posting their fastest year-on-year growth in more than 40 years as robust global investment in artificial intelligence boosted semiconductor demand to record levels. The strong performance has reinforced confidence in the export-driven economy and supported the country’s standout stock market gains.
Preliminary trade figures released on Monday showed exports from Asia’s fourth-largest economy climbed 53.2 percent from a year earlier to an all-time high of $87.75 billion.
South Korea’s exports post strongest growth rate since January 1984
South Korea’s exports have now expanded for 12 straight months on an annual basis, with May marking the strongest growth rate since January 1984 and delivering a record monthly trade surplus.
The export surge has strengthened the economic outlook, prompting the country’s central bank last week to raise its 2026 growth forecast to 2.6 percent from 2.0 percent, after the economy recorded its fastest quarterly expansion in nearly six years, driven by booming semiconductor shipments.
Investor optimism also lifted the benchmark KOSPI index to a record high on Monday, with the market rising more than 2 percent in morning trading. The index has more than doubled so far this year, fueled by strong gains in chipmakers Samsung Electronics and SK Hynix as soaring memory chip prices continue to boost profitability. The rally follows a 76 percent gain in 2025, the index’s strongest annual performance since 1999.
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South Korea’s semiconductor exports surge to record $37.16 billion
In May, South Korea’s semiconductor exports soared 169.4 percent year-on-year to a record $37.16 billion, supported by rising memory chip prices and growing investment in artificial intelligence by major U.S. technology companies.
Computer exports also posted a sharp increase of 290.7 percent, driven by strong demand for AI servers, while petroleum product shipments rose 46.6 percent amid elevated oil prices. In contrast, automobile exports declined 5.9 percent, affected by supply chain disruptions in the Middle East and the impact of U.S. tariffs.
Exports to South Korea’s two largest trading partners strengthened significantly, with shipments to the United States rising 59.1 percent and those to China increasing 80.9 percent. Meanwhile, exports to the Middle East fell 7.7 percent.
On the import side, purchases from abroad rose 20.8 percent to $60.80 billion, slightly below economists’ expectations of a 21.5 percent increase but marking the strongest growth since August 2022.
As a result, South Korea recorded a trade surplus of $26.95 billion in May, widening from $23.75 billion in April and reaching the highest monthly surplus on record.
