In September 2025, South Korea’s export performance exceeded expectations as demand for semiconductors surged. Exports rose by 12.7% year-on-year to US $65.95 billion, the fastest pace in 14 months. Much of the gain stemmed from a 22% jump in chip exports, which hit a record $16.61 billion. Strong contributions also came from auto exports, which increased 17%, buoyed by rising global demand for hybrid and electric vehicles.
Trade with the European Union and ASEAN nations posted robust growth, increasing 19.3% and 17.8% respectively. Exports to China nudged up 0.5%, signaling a modest revival in that relationship. Yet trade to the United States fell by 1.4%, reflecting continuing tariff pressures amid trade friction. Steel exports remained weak, slipping 4.2% under the weight of U.S. 50% tariffs.
The trade surplus reached US $9.56 billion, the highest since 2018. The result was welcomed by many economists, though caution was also voiced. Some analysts warned that stalling negotiations with the U.S. could threaten future export momentum. Others flagged that external demand may soften, especially if global growth slows.
To sustain momentum, South Korea is likely to lean further into high-tech exports and diversify trade partners. Government support could strengthen emerging sectors like AI hardware and advanced manufacturing. Still, exposure to trade policy shifts remains a vulnerability. Observers will watch closely whether the export surge can be converted into longer-term growth.
