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🇰🇷 South Korea /Economy & Trade

South Korea's Q1 exports rank 5th globally, projected to exceed $800 billion this year

From Hankyoreh · (4m ago) Korean Positive tone

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • South Korea's exports surged by 37.8% year-on-year in the first quarter to a record $219.9 billion, driven primarily by a boom in semiconductor exports.
  • Semiconductor exports alone increased by 139% to $78.5 billion, fueled by rising memory prices and increased investment in AI servers.
  • With this strong performance, South Korea's first-quarter exports ranked fifth globally, and projections suggest the country could maintain this position and exceed $800 billion in exports for the year.

The Hankyoreh reports a resounding success for South Korea's economy, with first-quarter exports reaching an all-time high of $219.9 billion, a remarkable 37.8% increase from the previous year. This surge, largely propelled by an unprecedented boom in semiconductor exports, has placed South Korea firmly in the global top tier.

The star performer, semiconductors, saw a staggering 139% increase in exports, reaching $78.5 billion. This growth is attributed to a confluence of factors, including rising memory chip prices and a significant uptick in investment for AI servers. The Ministry of Trade, Industry and Energy highlighted that this robust performance in semiconductors, alongside strong double-digit growth in other key export items, has propelled South Korea to the fifth position globally in terms of export value for the first two months of the year.

The semiconductor exports are driving the overall exports, while exports other than semiconductors are also showing robust double-digit growth, pushing us to fifth place globally in exports for January-February.

— Kim Jeong-kwanMinister of Trade, Industry and Energy, explaining the drivers behind South Korea's export performance.

Beyond semiconductors, the article notes the growing influence of the 'K-wave' on export figures. Exports of cosmetics (K-beauty) rose by 21.5%, and agricultural and fishery products (K-food), including a notable increase in ramen exports, grew by 7.4%. Even exports of stationery and toys saw a 16.6% increase, linked to the popularity of Korean films and dramas. This diversification of export drivers, while still led by high-tech goods, showcases the broadening appeal of Korean culture and products worldwide.

Looking ahead, the Ministry projects that if current trends continue, South Korea could not only maintain its fifth global ranking but also surpass $800 billion in total exports for the year. This optimistic outlook, coupled with a significant trade surplus of $50.4 billion in the first quarter, paints a picture of economic resilience and strength. The Hankyoreh emphasizes that this performance is not just a statistical achievement but a testament to the dynamism of Korean industry and its growing global influence.

We need to watch the trend, but if this continues, it's possible for exports to reach $800 billion this year and secure fifth place globally.

— Ministry of Trade, Industry and Energy officialProviding an optimistic outlook for the year's export performance.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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