South Korea July Export Performance
South Korea’s preliminary trade data for July showed exports expanding 62.8% year‑on‑year to $98.89 billion, surpassing the 59.0% increase forecast by a Reuters poll of economists. The growth rate slowed from the 70.7% surge recorded in June, which had been the strongest annual increase since 1978, but July still posted the second‑fastest expansion since the export rally began in June 2025.
Semiconductor exports jumped 179% YoY as memory‑chip prices continued to rise, while computer exports surged 404% YoY, reflecting heightened global demand for AI‑related hardware and large U.S. technology firms’ AI investments.
Samsung Electronics (KS:005930) disclosed a more than 250‑fold increase in its quarterly chip profit and announced multiyear supply agreements with major data‑centre operators, cautioning that global semiconductor shortages are expected to intensify and persist through 2028. SK Hynix (KS:000660) also posted strong quarterly earnings, though its results fell short of elevated investor expectations, adding to concerns about a possible slowdown in AI spending.
The KOSPI index fell 22% in July, marking its largest monthly decline since 2008, driven by a sell‑off in AI‑related shares; however, the index staged a record rally on the following Friday as capital returned to global semiconductor stocks.
Export destinations showed robust growth: shipments to China rose 96% YoY, to the United States increased 69%, and to the Middle East grew 25% after five consecutive months of decline, a rebound linked to the ongoing Iran conflict.
On the import side, South Korea’s imports rose 26.5% YoY to $68.56 billion, closely matching the 26.6% forecast. The trade surplus narrowed to $30.32 billion in July, down from a record $36.09 billion recorded in June.