S. Korea's exports rise 1.3 pc in Aug on robust chip demand

Seoul, Sep 1 South Korea's exports grew 1.3 per cent from a year earlier in August, despite US tariff effects, thanks to strong demand for semiconductors, government data showed on Monday.

Outbound shipments came to $58.4 billion last month, rising for the third consecutive month, according to data compiled by the Ministry of Trade, Industry and Energy.

Imports decreased 4 percent on-year to $51.89 billion, resulting in a trade surplus of $6.51 billion, reports Yonhap news agency.

Semiconductor exports jumped 27.1 percent on-year to reach an all-time high of $15.1 billion in August, driven by a sharp increase in memory chip prices sparked by the global expansion of investment in artificial intelligence (AI) infrastructure.

Auto exports increased 8.6 percent on-year to $5.5 billion won, marking the highest figure for any August, on the back of robust demand for electric vehicles (EVs) and hybrid cars.

Ship exports surged 11.8 percent to $3.14 billion, marking the sixth consecutive month of increase, while shipments of agro-fisheries products added 3.2 percent to $960 million, also the highest for any August.

Shipments of cosmetics expanded 5.1 percent to $870 million amid the global popularity of Korean culture, and exports of electronic devices climbed 5.6 percent to $1.29 billion, both the highest figures for August in history.

Exports of petroleum and petrochemical products, however, declined 4.7 percent and 18.7 percent on-year to $4.17 billion and $3.38 billion, respectively, amid global oversupply.

Shipments of displays dropped 9.2 percent to $1.65 billion, and exports of wireless communications equipment went down 14.1 percent to $1.56 billion, while secondary battery exports tumbled 31.3 percent to $490 million.

Steel exports dipped 12.6 percent to $690 million amid 50 percent U.S. tariffs on all steel imports.

"It marked the first time since August 2023 Korea's exports to the U.S. came below the $9 billion mark," Seo Ga-ram, an official at the ministry said, noting that U.S. tariffs had a "big" impact.

In particular, steel exports to the U.S. nosedived 32.1 percent and auto parts exports slid 14.4 percent.

Seo said the government will work to minimize the impact of Washington's plan to introduce a stricter semiconductor export control mechanism, stripping Samsung Electronics Co. and SK hynix Inc. of "validated end-user" status, to minimize the impact of such a move on Korean chipmakers.

Exports to China fell 2.9 percent to $11.01 billion on overall weakness of export items.

Exports to the European Union went down 9.2 percent to $5.81 billion on sluggish demand for machinery, petrochemical and biohealth products.

Shipments to Japan and India also dipped 5.2 percent and 4.8 percent to $2.37 billion and $1.56 billion, respectively.

On the other hand, exports to the Association of Southeast Asian Nations (ASEAN) advanced 11.9 percent to $10.89 billion, up for the third consecutive month, driven by strong demand for semiconductors and ships.

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