SEOUL — South Korea’s monthly exports surged to nearly $100 billion in July, driven by an unprecedented boom in global demand for advanced artificial intelligence hardware and high-performance memory chips. According to official data released Saturday by the Ministry of Trade, Industry and Energy, total exports reached $98.89 billion (142.8 trillion won), marking a staggering 62.8% year-on-year increase and securing the second-highest monthly export figure in the nation's history. 

The remarkable performance underscores the strength of an ongoing semiconductor supercycle that has revitalized the export-reliant economy. Daily average exports, which adjust for working days, surged 69.6% year-on-year to $4.12 billion, sustaining a level above $4 billion for the third consecutive month. July also marked the 14th consecutive month of broken monthly export benchmarks and the fifth straight month in which overall exports exceeded $80 billion. 

The trade surplus reached $30.32 billion for July, topping the $30 billion threshold for the second consecutive month. This brought the cumulative trade surplus for the first seven months of the year to $168.0 billion—a massive $134.1 billion increase compared to the same period last year. 

Chips and AI Infrastructure Lead the Expansion

Semiconductors continued to anchor the export rally. Chip exports soared 178.8% year-on-year to $41.01 billion, clearing the $40 billion threshold for the second month in a row following June's all-time record of $44.8 billion. High-value memory products, particularly High Bandwidth Memory (HBM) and DDR5 DRAM chips, experienced sustained robust global demand alongside rising fixed contract prices. Analysts noted that the chip sector managed to maintain strong momentum despite external uncertainties, such as potential supply shifts in China and new regional artificial intelligence announcements. 

The global rollout of AI infrastructure by major technology enterprises also propelled computer exports up 404.0% to $4.79 billion, driven primarily by enterprise solid-state drives (SSDs). Wireless communication equipment registered a 51.0% increase to $1.81 billion as strong global sales of flagship smartphones, including the Galaxy S26 series, offset the cost pressures on entry-level models caused by rising component prices. Display exports edged up 2.4% to $1.61 billion, supported by exclusive supply allocations for upcoming premium and foldable mobile devices.

Broad-based growth was observed across almost all major sectors, with 19 out of South Korea’s 20 core export categories recording year-on-year gains. Automobile shipments grew 7.0% to $6.24 billion, bolstered by strong international demand for eco-friendly models like hybrid vehicles. While internal combustion engine car sales declined 3.1% to $3.65 billion, exports of electric and hybrid vehicles jumped 22.2% to $1.65 billion. Used car exports, however, dropped 27.2% to $620 million due to trade regulations and instability in Middle Eastern markets. 

Among other heavy industries, shipbuilding exports jumped 46.9% to $32.9 billion on higher deliveries of liquefied natural gas (LNG) carriers and tankers. Petroleum products rose 34.1% to $5.68 billion as elevated crude prices sustained higher export unit values, even though shipped volumes fell 8.8%. Petrochemical exports advanced 10.3% to $4.18 billion. Steel shipments grew 4.4% to $2.36 billion, overcoming international tariff barriers thanks to rising construction demand for AI data centers and pipeline replacement projects in the United States and Europe.

Emerging categories also set records. Biohealth exports rose 30.4% to $1.57 billion on expanding market share for biosimilars in Europe. Cosmetics gained 37.8% to $1.35 billion, while agricultural and fisheries exports rose 2.3% to $1.09 billion, both achieving their highest July performance levels on record.

Regional Breakdown and Trade Environment Outlook

Regionally, South Korea expanded its shipments to eight out of nine key global export markets. Exports to China surged 96.2% to $21.68 billion, remaining above $20 billion for a second month as gains in semiconductors and non-ferrous metals offset weaknesses in general machinery. 

Shipments to the United States grew 68.7% to $17.43 billion, propelled by a 188% spike in semiconductor shipments alongside strong demand for data center equipment. Exports to ASEAN reached an all-time record of $18.80 billion, up 73.7%, while shipments to the European Union reached a record $9.38 billion, up 55.7%. Exports to the Middle East turned positive for the first time since January, climbing 24.7% to $1.83 billion.

July imports increased 26.5% year-on-year to $68.56 billion. Energy imports expanded 50.1% to $14.48 billion, driven by a 54.2% jump in crude oil import value due to higher crude prices and a 7% increase in import volume. Non-energy imports rose 21.4% to $54.08 billion, led by a 55.4% surge in semiconductor manufacturing equipment.

Commenting on the results, Minister of Trade, Industry and Energy Jung-kwan Kim praised the versatility of Korean exporters, noting that non-semiconductor products grew by a solid 26% alongside the ongoing memory chip boom. However, the minister cautioned that the foreign trade landscape remains challenging due to new tariff measures under Section 301 of the U.S. Trade Act, intensifying global protectionism, and Middle Eastern geopolitical volatility. The ministry pledged to mobilize all policy tools to help domestic exporters navigate non-tariff barriers and evolving international regulations.

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