Korea's September exports hit record $120.9 billion on chip surge

South Korea's exports surged 83.5 percent in September to a record 120.94 billion dollars, the first time monthly shipments have topped 120 billion dollars, with the widest trade surplus the country has recorded, the industry ministry said.

Imports rose 26.0 percent to 71.09 billion dollars, leaving a trade surplus of 49.85 billion dollars, the first above 40 billion dollars.

Semiconductor exports reached 60.30 billion dollars, up 262.8 percent from a year earlier, the first time a single product category has crossed the 60 billion dollar mark. DDR5 16Gb memory chip prices rose to 48.0 dollars in September from 37.5 dollars in May. Computer exports jumped 435.3 percent to 7.00 billion dollars, and wireless communication devices rose 23.4 percent to 2.14 billion dollars.

"September exports exceeded 120 billion dollars for the first time, and cumulative exports through September also broke through 800 billion dollars, surpassing last year's record of 709.3 billion dollars ahead of schedule," Trade Minister Kim Jung-kwan said. "This is a valuable result that once again demonstrates the resilience of our industries and companies, and it is thanks to the sweat and effort of our businesspeople who have competed fiercely in markets around the world."

Among the 20 major export categories, 11 increased. Petroleum products rose 72.0 percent to 7.22 billion dollars and petrochemicals gained 5.1 percent to 3.95 billion dollars, lifted by a sharp rise in international oil prices as shipping through the Strait of Hormuz declined and Red Sea transport risks widened, even as volumes fell 6.9 percent and 19.1 percent respectively. Dubai crude averaged 113.7 dollars a barrel, up 62.4 percent, and petroleum product export prices rose 84.7 percent to 1,267 dollars a ton.

Automobile exports slipped 5.5 percent to 6.05 billion dollars on the timing of the Chuseok holiday and weak used-car shipments, though daily-average exports rose 5.5 percent. General machinery fell 3.2 percent to 4.07 billion dollars, while ship exports rose 29.9 percent to 3.76 billion dollars on LNG and very large gas carrier deliveries, and cosmetics reached a record 1.51 billion dollars, up 31.4 percent on growth across China, the United States, ASEAN and the European Union.

By region, exports to China rose 122.7 percent to 26.01 billion dollars, topping 20 billion dollars for a fourth straight month; shipments to the United States gained 137.0 percent to 24.33 billion dollars; ASEAN-bound exports rose 92.6 percent to 21.29 billion dollars, passing 20 billion dollars for the first time; and EU shipments rose 20.9 percent to 8.65 billion dollars for a tenth consecutive month of growth. Exports to the Middle East fell 14.1 percent to 1.60 billion dollars as automobile, auto parts and machinery shipments declined.

Cumulative exports for the first nine months reached 814.5 billion dollars, up 56.8 percent from a year earlier, already exceeding last year's full-year record of 709.3 billion dollars. Daily-average exports rose 105 percent to 5.63 billion dollars, surpassing 5 billion dollars for the first time, while energy imports rose 38.0 percent to 12.96 billion dollars and non-energy imports gained 23.6 percent to 58.13 billion dollars.

Kim said the government would keep high-level channels with trading authorities in major countries running while monitoring export restrictions, and respond preemptively so that unexpected external factors do not harm exports. "An annual export total of 1 trillion dollars is now expected, but strengthening global protectionism and tensions in the Middle East remain major variables for our exports," he said.