South Korea’s exports nearly doubled in October, rising 93.7 percent year on year to USD 115.3 billion, driven by demand for chips used in artificial intelligence. The trade surplus reached USD 42.5 billion. Imports grew 36 percent over the same period.
Chips lead the surge
Semiconductor exports rose 259 percent to USD 56.4 billion, about half of total exports. Computer exports jumped 497 percent, while petroleum product exports climbed 80 percent and car exports rose 18 percent.
A shift in the holiday calendar also flattered the figures. Chuseok fell in September this year, compared with October last year. Working-day-adjusted export growth was 76.1 percent.
Markets turn lower
Despite the strong trade data, the Kospi index fell 3.5 percent on Friday. Investors again questioned whether heavy spending on AI infrastructure would pay off. SK Hynix shares dropped 7 percent and Samsung shares fell 3 percent.
Results from Amazon and Intel added to those doubts.
Policy and outlook
Export strength may support a further rate hike at the Bank of Korea’s 26 November meeting. Inflation stood at 2.9 percent in September, above the central bank’s 2 percent target. The recovery, however, remains uneven.
Economic growth reached 1 percent quarter on quarter in the third quarter. Private consumption declined 0.2 percent over the same period, while machinery and equipment investment rose 4.1 percent.
