South Korea October Exports Climb 93.7%, Driven by AI Demand
Overseas sales reached US$115.28 billion, with semiconductor and computer shipments surging due to global artificial intelligence investment.
October Export Growth
South Korea's exports surged 93.7 per cent in October, reaching US$115.28 billion, according to trade data released on Sunday. This marks the fastest annual expansion since January 1974 and significantly exceeded the 83.7 per cent gain recorded in September.
The increase also surpassed market predictions, which had a median forecast of 93.2 per cent in a Reuters poll of economists. A timing difference in local Chuseok holidays, providing more working days, contributed to the overall rise.
AI Drives Sectoral Gains
The trade ministry stated that strong global demand for artificial intelligence (AI) technologies fuelled much of October's export growth. Semiconductor exports saw a 259.4 per cent increase, driven by consistently high prices and volumes. This reflects ongoing facility investment by major technology companies globally, competing for leadership in the AI industry.
Sales of computing hardware also climbed sharply, with a 496.6 per cent rise, as demand for servers supporting AI services grew.
Trade Balance and Imports
Imports into South Korea also expanded, rising 36.0 per cent to US$72.78 billion. This represents the largest annual import growth since January 2022, following a 26.0 per cent increase in September. The country's trade balance for October registered a surplus of US$42.50 billion. This figure was, however, smaller than the record US$49.97 billion surplus recorded in the previous month.
This surge in South Korean exports, particularly in technology, points to continued strong demand for AI-related hardware across Asia. Companies in Taiwan, such as TSMC, and those in Vietnam and Malaysia involved in electronics assembly, can expect higher order volumes for the coming quarter.
Their Q4 2026 earnings reports, due in early 2027, will show the extent of this demand on their production capacity and revenue. Investors should watch for announcements from these firms regarding capital expenditure plans for 2027, as they respond to the need for increased output of chips and computing components.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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