South Korea Exports Hold Momentum As Chips Set Annual Record
Michelle ReidSouth Korea's exports maintained growth momentum, supported by strong semiconductor demand, easing concerns over global trade protectionism and tariff-related uncertainty that had weighed on the country for much of the year.
South Korea's exports maintained growth momentum, supported by strong semiconductor demand, easing concerns over global trade protectionism and tariff-related uncertainty that had weighed on the country for much of the year.
The value of shipments adjusted for working-day differences increased 8.7% in December from a year earlier, according to data released Thursday by the trade ministry. That compared with a 13.3% gain initially reported for the full month of November.
Unadjusted exports rose 13.4%, and overall imports increased by 4.6%, resulting in a trade surplus of US$12.2 billion (RM49.48 billion).
The ongoing growth in exports offers some relief for South Korea after months of negotiations with the US over a trade deal. The agreement by the US to impose an across-the-board 15% tariff on Korean goods brought relief compared with higher duties imposed in the spring, though the level of taxation is still higher than in the period before Donald Trump began his second term as US president.
Semiconductor exports remained the backbone of growth, advancing 43.2% amid continued demand tied to artificial intelligence and data-centre investment. The strong output helped make up for sluggishness in the auto sector, where shipments fell 1.5% due to increased overseas production and a base effect from the previous year's robust performance, the ministry said. Petrochemical exports rose 6.8% and the bio sector posted a 22.4% gain.
By destination, exports to China gained 10.1%, while those to the US were up 3.8%. Shipments to the Asean market and the Middle East jumped 27.6% and 25.5%, respectively.
For the year as a whole, South Korea's exports rose 3.8% in 2025, topping the US$700 billion mark for the first time at US$710 billion, the ministry said, adding that the trade surplus amounted to US$78 billion. Annual shipments of semiconductors, the biggest driver of exports, rose 22.2% from 2024, also setting a fresh record at US$173 billion, up from US$142 billion the previous year, it said.
"In 2025, South Korea's exports remained anchored by solid gains in core industries such as semiconductors, automobiles, and shipbuilding, while electrical equipment, agricultural and fishery products, and cosmetics delivered record performances, emerging as new drivers of growth," the ministry said in a statement.
The trade data follow a decision in late November by the Bank of Korea (BOK) to keep its benchmark interest rate at 2.5% as policymakers balance the desire to support the economy against financial stability risks.
BOK governor Rhee Chang Yong said the board members remain evenly split over the near-term outlook, highlighting a cautious stance on any additional easing.
With exports equivalent to more than 40% of gross domestic product, the year-end resilience may give the central bank more room to stay patient as it monitors risks ranging from household debt to currency volatility.
