South Korea's Exports Soar Nearly 63% in July, Driven by Chips and AI Demand
Quick Look
South Korea's monthly exports surged nearly 63% year-on-year in July to $98.89 billion, the second highest on record, fueled by robust global demand for memory chips and increased AI data center investments, particularly from China and the United States.
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Why It Matters
South Korea's July exports reached the second-highest level ever, driven by strong global demand for memory chips and eco-friendly automobiles.
SEOUL, Aug. 1 (Yonhap) -- 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.
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.
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.
Open Questions
- How will global chip prices evolve in the coming months?
- Will AI data center investments continue to drive US demand?
- What will be the impact of heightened competition on memory products?
