Investing.com — South Korean exports grew faster than expected in July, supported by strong global demand for semiconductors and computers used in artificial intelligence infrastructure, preliminary trade data showed on Saturday.
Exports rose 62.8% from a year earlier to $98.89 billion, exceeding the 59.0% increase forecast in a Reuters poll of economists.
The expansion slowed from a 70.7% surge in June, which was the strongest annual increase since 1978. July still recorded the second-fastest growth rate during the export expansion that began in June 2025.
Semiconductor exports jumped 179% as memory-chip prices continued to rise, according to South Korea’s trade ministry. The growth came amid uncertainty surrounding Apple’s potential use of Chinese memory chips and the emergence of new AI technology in China.
Computer exports climbed 404%, driven by increased AI investment from large U.S. technology companies.
Samsung Electronics () recently reported a more than 250-fold increase in quarterly chip profit and announced multiyear supply agreements with major data-centre operators. The company expects global semiconductor shortages to intensify and continue into 2028.
SK Hynix () also reported strong quarterly earnings, though its results fell short of elevated investor expectations and added to concerns about a possible slowdown in AI spending.
South Korea’s benchmark fell 22% in July, its largest monthly decline since 2008, amid a sell-off in AI-related shares. The index staged a record rally on Friday as investment returned to global semiconductor stocks.
Exports to China rose 96% in July, while shipments to the U.S. increased 69%. Exports to the Middle East gained 25% following five consecutive monthly declines amid the Iran war.
Imports rose 26.5% to $68.56 billion, close to economists’ forecast of 26.6%. South Korea recorded a trade surplus of $30.32 billion, down from a record $36.09 billion in June.