South Korea's exports nearly doubled in October, government data released Sunday showed, the strongest rise in more than 50 years, as strong global demand for investments in artificial intelligence led to an increase in the country's exports of electronic chips.
Exports from Asia's fourth-largest economy, which is an indicator of global trade, rose 93.7 percent compared to the same month last year to $115.28 billion, slightly more than the average rise expected of 93.2 percent in a Reuters poll of economists.
The increase, boosted by a higher number of working days compared to the previous year due to the different timing of the Chuseok holiday, exceeded September's increase of 83.7 percent, and was the strongest since January 1974.
Thanks to the global boom in investments in artificial intelligence, South Korea's economy grew faster than expected in the third quarter, supported by strong exports and investments in semiconductors, while chipmakers Samsung Electronics and SK Hynix recorded jumps in profits.
Minister of Trade, Industry and Energy Kim Jong-kwan said: “With exports continuing to achieve strong growth and exceeding $110 billion in October, it is certain that annual exports worth one trillion dollars will be reached during November.”
South Korea's total exports for the period from January to October amounted to $930 billion. If annual exports exceed one trillion dollars, South Korea will become the fourth country in the world to achieve this achievement after the United States, China and Germany.
The Ministry of Commerce said that semiconductor sales abroad jumped 259.4 percent in October to $56.44 billion, as prices and quantities remained high as major global technology companies continued to invest in facilities as part of the competition for leadership in the artificial intelligence sector.
Computer sales rose 496.6 percent due to increased demand for servers for artificial intelligence services.
Shipments to China increased by 133.6 percent, while exports to the United States increased by 185.8 percent, to Europe by 56.4 percent, and to Southeast Asia by 128 percent.
South Korean imports rose 36 percent to $72.78 billion, after rising 26 percent in September, to record the largest annual increase since January 2022, driven by higher oil prices, as well as demand for semiconductor manufacturing equipment and automobiles.
The country recorded a monthly trade surplus of $42.50 billion, which is less than the unprecedented surplus of $49.97 billion in the previous month.
Emaar the Economic City recorded a net loss of 241 million riyals ($64.27 million) during the third quarter of 2026, compared to losses amounting to 135 million riyals ($36 million) in the same period last year, an increase of 78.52 percent.
On a quarterly basis, the company's net losses increased by 995.45 percent, compared to the second quarter of the current year, during which it recorded losses worth 22 million riyals ($5.87 million).
The company explained, in a statement on the Saudi Stock Exchange (Tadawul) website, that the increase in losses on an annual basis is mainly due to a decrease in revenues and an increase in legal allocations by 54 million riyals ($14.4 million).
This was partially offset by a decrease in financing costs by 53 million riyals ($14.13 million), as a result of capitalizing part of the shareholder loan during the year 2025, in addition to a decrease in general and administrative expenses by 25 million riyals ($6.67 million).
The company's share of investment losses calculated according to the equity method decreased by 11 million riyals ($2.93 million), and the provision for expected credit losses was reversed by the same value, as a result of improved collection of obsolete receivables.
Regarding revenues, the company recorded 145 million riyals ($38.67 million) during the third quarter, compared to 358 million riyals ($95.47 million) in the same period last year, a decrease of 59.5 percent year-on-year.
The net profit of Saudi Chemical Holding Company (Chemical) declined by 26 percent to 64.6 million riyals ($17.2 million) during the third quarter of 2026, compared to 87.2 million riyals ($23.3 million) in the same period of the previous year.
The company explained, in a statement on the Saudi Stock Exchange (Tadawul) website, that the decrease in net profit is mainly due to a decline in sales, an increase in the cost of raw materials and shipping costs, in addition to an increase in the allocation for zakat and tax.
The company's revenues decreased by 5.1 percent to 1.7 billion riyals ($452.7 million) during the third quarter, compared to 1.79 billion riyals ($476.8 million) in the same period of the previous year, as a result of the decline in quantities sold.
In the first nine months of the current year, the company's net profit declined by 2.6 percent to 232.4 million riyals ($62 million), compared to 238.5 million riyals ($63.6 million) in the same period of the previous year.
The company attributed the decrease in net profit during the period to the increase in the cost of raw materials and shipping costs, in addition to the increase in the provision for zakat and tax, despite the decrease in financing expenses and the realization of profits from the revaluation of derivative financial instruments to cover the risks associated with commission rates.
On the other hand, the company’s revenues increased during the first nine months by 1.3 percent to 5.27 billion riyals ($1.4 billion), compared to 5.2 billion riyals ($1.39 billion) in the same period of the previous year, as a result of the increase in quantities sold.
