South Korea recorded a rise in exports in January, thanks to strong demand for semiconductor chips. According to government data that was released on Sunday, exports climbed to a record high in the month, with shipments jumping more than 30% to nearly $66 billion in January.
The development was announced by the Ministry of Trade, Industry, and Resources, which said outbound shipments from Korea hit $65.85 billion in January, a rise of 34% from a year ago. It also marked the eighth consecutive month of growth registered by the country. The daily average value of exports also hit a new all-time high, rising by 14% year-on-year to $2.8 billion, the ministry added.
South Korea registers surge in chip demand
According to the statement, semiconductors led the rally, with outbound shipments amounting to more than double from a year earlier to $20.5 billion. The result was closer to hitting the 420.8 billion registered in December. The ministry noted that the rise was a result of the rise in global demand for artificial intelligence servers and a sustained recovery in memory chip prices that started late last year.
The development means that Korea has now posted record-high chip export numbers for the month for 10 consecutive months. Automobile shipments also registered a rise, surging 22% on-year to $6.07 billion. The price mark was the second-highest registered in January on record. The ministry noted the larger number of working days, with the Lunar New Year holiday falling in February this year, as well as demand for hybrid and electric vehicles.
Records show that 13 of the 15 key export items of the country posted growth in January, including wireless communication devices, displays, petroleum products, and bio-health. Agro-fisheries and cosmetics also stood out, rising 19% and 36%, respectively, to about $1 billion each. Both items also recorded highs for the month.
Exports to the US rose by 30%
In terms of destination, exports to the United States surged by 30% from a year ago, with the figure climbing to $12 billion. The figure was also the highest January figure on record and is coming amid a lingering trade policy agreement. Car and machinery shipments, sectors that are most exposed to the tariffs, registered a 13% and 34% drop, respectively. Meanwhile, Shipments to China rose 47% to $13.5 billion, with the figure pushed by the increase in chip exports.
Exports to the Association of Southeast Asian Nations also rose by 41% to $12.1 billion, reaching the highest January level on record and the third highest monthly tally overall, while shipments to the European Union rose 7% to $5.4 billion. Imports also climbed 12% from a year ago to $57.1 billion, resulting in a trade balance of $8.7 billion and extending the surplus streak to a 12th consecutive month.
Kim Jung-kwan, Trade Minister for Korea, highlighted the rising uncertainty in the global trade environment as a result of the recent United States tariff policies and the spread of protectionism. Jung-kwan said that the government is preparing to press ahead with consultations with the United States, with the national interests as its top priority. In addition, the trade minister noted that the country expects to build a resilient trade structure that can withstand external shocks through diversification of products, markets, and participants.
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Source: https://www.cryptopolitan.com/south-koreas-exports-high-chip-demand/
