Post by : Shakul

South Korea's exports reached an all-time monthly high in May 2026, fueled by extraordinary demand for semiconductors and artificial intelligence-related technologies. Government data released on Monday showed that overseas shipments climbed sharply, highlighting the country's growing role in the global technology supply chain.

Exports increased by 53.2 percent compared with the same period last year, reaching a record value of $87.8 billion. This marks the third consecutive month that South Korea's exports have exceeded the $80 billion threshold, reflecting strong global demand for advanced technology products and industrial components.

The semiconductor sector remained the primary engine of growth. Chip exports surged by 169.4 percent year-on-year to reach $37.2 billion, the highest monthly figure ever recorded by the country. Industry experts attribute the growth to the ongoing global AI boom, which has increased demand for high-performance memory chips and data center infrastructure.

South Korea's imports also rose significantly during the month. Imports climbed 20.8 percent to $60.8 billion, resulting in a trade surplus of $26.95 billion. The strong surplus reflects the country's competitive position in high-value technology exports and manufacturing.

Exports to major trading partners showed remarkable growth. Shipments to the United States jumped 59.1 percent to $15.97 billion, supported by rising demand for AI-related products and electronic components. Exports to ASEAN countries increased by 58.4 percent to $15.85 billion, while exports to the European Union rose by 2.4 percent to $6.19 billion.

Despite the overall positive performance, some sectors faced challenges. Automobile exports declined by 5.9 percent to $5.83 billion due to fewer working days, supply chain disruptions, shipping constraints, and the continuing impact of U.S. tariff policies affecting global trade flows.

Exports to the Middle East also recorded a decline of 7.7 percent, totaling $1.27 billion. Car exports to the region were particularly affected, falling by 27 percent during the month. Nevertheless, strong performance in semiconductors and technology products more than compensated for weaknesses in other sectors, helping South Korea achieve one of its strongest export performances on record.

#Economy #South Korea #trade #Business