South Korea’s April exports led by semiconductors, cars

South Korea’s exports in April demonstrated a robust recovery, marked by positive growth rates across major items and export regions. The export surge is not confined to specific items or areas but rather permeates through the country’s primary export sectors and geographic destinations.

The Ministry of Trade, Industry and Energy (MOTIE) revealed on May 1 that exports in April reached $56.62 billion (78 trillion won), reflecting a 13.8% increase from the corresponding period last year. This uptick marks the second double-digit surge in three months, following January’s 18.2% rise. Imports also saw a 5.4% increase to $54.73 billion, resulting in a trade surplus of $1.53 billion. Notably, Korea has maintained a trade surplus for seven consecutive months since October last year and a trade balance surplus for 11 consecutive months since June last year.

Semiconductors and automobiles led the surge in exports in terms of product and destination, with semiconductor exports soaring by 56.1% and automobile exports reaching a record-breaking $6.8 billion, surpassing the previous high set in November of last year ($6.5 billion). Notably, exports to the United States reached an all-time high, with automobiles and semiconductors driving the surge, constituting nearly 40% of the total exports.

Park Sung-keun, head of the Economic Outlook and Analysis Division at the Korea Institute for Industrial Economics and Trade, said, “Demand for IT products such as semiconductors is growing faster than expected, and the automobile industry, which was expected to stagnate, is performing remarkably well. The current trend exceeds our expectations from the end of last year.”

In April, exports of 13 of Korea’s 15 major export items increased, and seven out of nine major export regions also experienced growth. The robust performance in the automobile sector was driven by strong exports of eco-friendly cars, including hybrids and high-end sport utility vehicles (SUVs), surpassing the previous export record set just six months ago. Additionally, strong exports from GM’s production base in Korea contributed to this growth.

Semiconductors continued their upward trajectory, with a 56.1% increase for the sixth consecutive month, fueled by a significant rise in exports to the U.S. as AI adoption expands. The U.S., the fifth-largest semiconductor export market last year, surpassed China, Hong Kong, Vietnam, and Taiwan in March to become the fourth-largest market for Korea. Most of Hong Kong’s exports are destined for China, so the U.S. has become Korea’s third-largest semiconductor export market. Notably, Korea’s semiconductor exports to the U.S. surged by 188.3% to $2.1 billion (2.9 trillion won) through March this year.

Cho Ik-noh, a senior trade official at the MOTIE, said, “Exports of D-RAM modules destined for data centers have recently surged.” Alongside semiconductors, other major IT items, including displays (16.3%), wireless communications (11.4%), and computers (76.2%), also witnessed double-digit growth in April, continuing the positive momentum from March.

Furthermore, in April, exports of general machinery reached a record high of $4.7 billion, driven by Korean companies’ global expansion of their production bases. Ship exports recorded a 5.6% increase, marking the ninth consecutive month of positive growth. Biohealth (21.3%) and petroleum products (19%) also experienced substantial surges in the mid-20% range.

The nine major export markets expanded in seven regions, including the U.S., China, Latin America, and Asia-Pacific. The U.S. witnessed a four-month high, with exports to the rest of the world reaching $10.5 billion for the second consecutive month, primarily driven by semiconductor exports. Exports to Latin America (38.2%) saw a fourth consecutive month of growth, while ASEAN (10.5%), Japan (18.4%), and India (18%) also recorded significant gains. Chosun