Korea’s exports surge 24.6% in early May, driven by strong chip demand

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Korea’s exports surge 24.6% in early May, driven by strong chip demand

Published: 11 Sep. 2024, 11:07 Updated: 11 Sep. 2024, 16:13

Containers at the Port of Busan, the largest port in Korea. [YONHAP]

Korea's exports surged 24.6 percent on year during the first 10 days of May, driven by strong global demand for semiconductors, data showed Wednesday.

Outbound shipments reached $18.58 billion in the May 1-10 period, compared to $14.91 billion a year earlier, according to data from the Korea Customs Service.

Per-day exports increased 16.3 percent on year to $2.48 billion. Imports rose 11.3 percent on year to $18.4 billion during the period, resulting in a trade surplus of $200 million.

Exports, a key economic growth driver, have been recovering since late last year following a yearlong downturn.

In August, exports rose 11.4 percent on year to $57.9 billion, marking the 11th consecutive monthly gain, supported by strong demand for semiconductors, according to government data.

Semiconductor sales led the overall export growth, with chip exports jumping 38.8 percent to $3.47 billion during the first 10 days of the month.

Semiconductor exports accounted for 18.7 percent of the country's total exports during the cited period, up 1.9 percentage points from a year earlier amid an industry upturn.

Auto exports increased 12.8 percent to $1.58 billion, while sales of petroleum products grew 5.4 percent to $1.51 billion.

Sales of steel products climbed 21 percent to $1.29 billion, and automotive parts exports rose 24.8 percent to $644 million.

By country, shipments to China grew 16.3 percent to $3.95 billion, while exports to the United States surged 24.6 percent to $3.23 billion.

Exports to the European Union jumped 47.4 percent to $2.1 billion, and shipments to Vietnam rose 13.3 percent to $1.67 billion.

Exports to Japan increased 12.2 percent to $829 million, and shipments to Taiwan and Hong Kong grew 79.2 percent and 24.2 percent, respectively.

The government expects exports to grow 9 percent this year, reaching a record high of more than $700 billion.

BY YOON SEUNG-JIN, YONHAP [yoon.seungjin@joongang.co.kr]