(June 22): South Korea’s export growth remained robust in early June, thanks to a continued boom in the semiconductor sector.
Exports adjusted for working-day differences rose 49.7% from a year earlier in the first 20 days of this month, according to customs office data released Monday. That compares with a 52.6% increase in the same 20-day period of May.
On an unadjusted basis, shipments increased 60.4%, while imports rose 23.2%, leading to a trade surplus of US$17.5 billion.
The data suggest external demand remains robust, supported by booming investment tied to artificial intelligence and data centres. They also add to evidence that semiconductors remain the primary driver of South Korea’s growth, helping offset weakness in other parts of the economy.
Chip exports again led gains, rising 188.4% from a year earlier. Shipments of computer-related products increased 293.3%, while petroleum-product exports were supported by elevated energy prices.
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Policymakers are assessing the implications of a prolonged semiconductor boom that has underpinned economic growth, boosted tax revenue and supported asset prices. The Bank of Korea (BOK) has turned more hawkish in recent months, citing inflation risks stemming from higher oil prices, a weaker won and resilient economic activity.
BOK governor Shin Hyun Song has argued that the benefits of the chip expansion are increasingly filtering through the economy via stronger corporate earnings, consumption and investment.
Speaking at a briefing last week, Shin said the semiconductor boom could complicate the inflation outlook, as record bonus payouts by major technology companies may spill over into broader wage growth and consumer spending. Consumer-price inflation accelerated to 3.1% in May, the fastest pace in more than two years, reinforcing the BOK’s tightening bias.
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By destination, exports to China rose almost 87%, while shipments to the US increased nearly 54%. Exports to Taiwan and Vietnam climbed 103.6% and 75.5%, respectively, reflecting broad-based strength in semiconductors, displays and petroleum products.
Uploaded by Liza Shireen Koshy
