South Korea Exports Nearly Double in October to $115.28 Billion

South Korea's exports nearly doubled in October, rising 93.7 percent from a year earlier to $115.28 billion, government data released on Sunday showed. It was the sharpest annual jump since January 1974 and the second largest monthly total on record, behind only September. The figure came in slightly above the 93.2 percent rise forecast in a Reuters poll of economists.

Semiconductors did most of the work. Chip exports jumped 259.4 percent from a year earlier to $56.44 billion, close to half of everything the country sold abroad in the month. The trade ministry said prices and volumes stayed high as global technology firms kept spending on facilities in the race to lead the AI industry. Computer exports rose 496.6 percent on demand for servers that run AI services.

Where the goods went

Shipments to China rose 133.6 percent to $26.98 billion, the fifth straight month above $20 billion. Exports to the United States jumped 185.8 percent to $24.9 billion on demand for chips, computers and electrical equipment used in AI infrastructure. Sales to Southeast Asia grew 128.0 percent to $21.33 billion, and exports to the European Union rose 56.4 percent to $8.1 billion.

Imports rose 36.0 percent to $72.78 billion, the biggest annual increase since January 2022, on higher crude oil prices and demand for semiconductor manufacturing equipment and cars. That left a wide trade surplus for the month.

Why it matters

South Korea is Asia's fourth largest economy, and its monthly trade figures are read around the world as an early signal for global demand, because the country sits inside the supply chains for chips, cars, ships and displays. A near doubling of exports says the AI building boom is still pulling hard on the factories that feed it. Samsung Electronics and SK Hynix both posted surging profits in the third quarter, and the wider economy grew faster than expected on the same chip strength.

Part of the jump is arithmetic. The timing of the Chuseok holidays left more working days in October this year than in the same month last year, which lifts the headline rate. Even with that help, the level is new ground: October was the second straight month above $110 billion.

What happens next

Exports for January to October reached $930 billion, up 60.6 percent from the same period last year and the first time the ten month total has passed $900 billion. About $70 billion now separates South Korea from $1 trillion in annual exports, a mark reached so far only by the United States, China and Germany.

"With exports continuing solid growth of more than $110 billion in October, it is becoming certain that annual exports of $1 trillion will be reached within November," said Kim Jung-kwan, the minister of trade, industry and resources.