South Korea's Exports Soar 63% in July, Second Highest Ever

South Korea's monthly exports soared to the second highest ever by moving up nearly 63 percent in July from a year earlier, data showed Saturday, amid solid global demand for memory chips.

Outbound shipments came to US$98.89 billion in July, according to the Ministry of Trade, Industry and Resources. It was slightly below the all-time high record of $102.2 billion posted in June.

Imports rose 26.5 percent on-year to $68.56 billion, resulting in a trade surplus of $30.32 billion.

By sector, exports of semiconductors, the backbone of Asia's fourth-largest economy, shot up 179 percent over the period to $41 billion as global prices for memory products remained high despite heightened competition.

The figure topped the $40 billion mark for two consecutive months.

South Korea's total exports, excluding the crucial semiconductor sector, rose 26 percent on-year in July.

Exports of automobiles also rose 7 percent to $6.2 billion on the back of strong global demand for hybrid and other eco-friendly models.

Outbound shipments of petroleum products jumped 34.1 percent to $5.68 billion, while those of petrochemical products gained 10.3 percent to $4.18 billion.

The industry ministry said exports of mobile devices rose 51 percent to $1.81 billion, as premium smartphones, such as the Galaxy S26 lineup, maintained solid sales despite soaring chip-driven production costs.

By destination, exports to China nearly doubled to $21.68 billion on the back of strong shipments of chips, nonferrous metal products and petroleum goods.

Exports to the United States surged 68.7 percent to $17.4 billion, driven by artificial intelligence (AI) data center investment projects rolled out by major high-tech companies, the data showed.

The monthly report also showed exports to Southeast Asian countries rose 73.7 percent to $18.8 billion, driven by strong shipments of semiconductors, displays and ships. Exports to the European Union gained 55.7 percent to $9.38 billion on the back of robust shipments across a broad range of products.

"Amid the strong performance of semiconductors, 19 of the country's 20 major export categories posted gains," Industry Minister Kim Jung-kwan said in a release, noting South Korea has successfully diversified its export portfolio.

Kim, meanwhile, said South Korea's exports still face headwinds from growing protectionism in major economies and persistent geopolitical uncertainties in the Middle East.

"The government will closely monitor market conditions for major export products and utilize all available policy measures to help South Korean businesses respond to changes in the global trade environment, including tariffs and non-tariff barriers," Kim added.