Key Takeaways
- South Korea’s semiconductor exports hit a record $16.6 billion in September, driven by demand for high-bandwidth memory (HBM) chips.
- Overall exports for the month reached $65.9 billion, the highest in over 42 months, while auto shipments also surged.
- US tariffs continue to pose challenges, with an overall decline in exports to the US despite some reductions in auto tariff rates.
Record Semiconductor Exports Amid Challenges
South Korea achieved historic semiconductor exports in September, totaling $16.6 billion, reflecting a more than 20% increase compared to the same month last year. This growth is largely attributed to heightened demand for advanced memory technologies, including high-bandwidth memory (HBM) chips essential for AI servers. The country’s industry ministry reported these figures, highlighting the resilience of the semiconductor sector despite ongoing challenges from US tariffs.
In addition to semiconductors, South Korea’s automotive industry also demonstrated strong performance with exports reaching $6.4 billion—also a record for September. These figures contributed to an overall export total of $65.9 billion, marking the highest monthly total in over 42 months.
Despite these positive numbers, South Korea faced a slight 1.4% decrease in exports to the United States, amounting to $10.27 billion. This decline is attributed to tariffs imposed on significant sectors, including steel, automobiles, and machinery. The US initially enforced a 25% tariff but later negotiated a reduction to 15%. However, these reduced rates have not yet been fully implemented for auto exports, contrasting with Japan’s more favorable arrangements.
The ongoing tariff negotiations with the US remain a source of uncertainty for South Korea’s trade landscape. Industry minister Kim Jung-kwan acknowledged the significant achievements of local companies in diversifying their markets despite adverse conditions caused by US tariffs. He emphasized the need for vigilance and swift responses to the unpredictable export environment.
Looking forward, the Korean government plans to bolster policy support to help maintain and enhance the global competitiveness of its exporters, ensuring they navigate these complex challenges effectively.
The record-setting export figures highlight not only the strength of the semiconductor and automotive sectors but also the strategic adaptations made by South Korean companies in the face of trade pressures.
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