South Korea has kicked off the year strong, achieving a remarkable 34% increase in exports for January, reaching a staggering $65.85 billion. This milestone marks the highest export value recorded for January and represents the most substantial growth rate in over four years, driven by surging global demand, particularly in the semiconductor sector.
The Ministry of Trade, Industry and Energy reported that this exceptional performance is attributed to both a favorable working calendar and heightened demand for high-tech products. January 2026 featured more working days compared to the previous year as the Lunar New Year holiday fell in February, further boosting trade opportunities.
Semiconductor Exports Propel Growth
The standout performer in South Korea’s export landscape was undoubtedly the semiconductor sector, which witnessed astonishing growth with a 102.7% year-on-year increase, totaling $20.5 billion. Strong demand for artificial intelligence (AI) servers has been a significant catalyst for this spike, alongside a steady recovery in memory chip prices.
According to the trade ministry, “The rise in memory prices since last year continued in January due to high demand for AI servers,” indicating that this upward trend is likely to persist as global interest in AI technologies remains robust. Notably, the chip industry has recorded double-digit growth for ten consecutive months, solidifying its status as South Korea’s primary export item.
Broad-Based Export Expansion
Not limited to semiconductors, South Korea’s export growth narrative extended across various categories. In a robust display of market resilience, 13 out of the 15 major export items reported year-on-year increases. Automotive exports, for instance, soared by 22% to reach $6.07 billion, marking the second-highest level for January. Other high performers included petroleum products, displays, wireless communication devices, and computers.
The agro-fisheries and cosmetics sectors also shone brightly, with exports climbing to record January figures, up 19% and 36% respectively, each nearing the $1 billion mark. This diverse performance underscores the strength of both traditional industries and emerging sectors within the South Korean economy.
Prominent Trade Partnerships Fuel Success
Significant increases were noted in exports to major trading partners, with shipments to China surging by 47% to $13.5 billion, bolstered by heightened chip exports. Similarly, shipments to the United States rose by 30% to $12 billion, setting a new January record, despite declines in car and machinery exports due to trade policy uncertainties.
Exports to ASEAN nations also climbed 41%, reaching $12.1 billion, while the European Union saw a modest 7% increase to $5.4 billion. On the import side, South Korea recorded a 12% rise in imports, bringing the total to $57.1 billion, ultimately resulting in a trade surplus of $8.7 billion—the twelfth consecutive month of surplus for the nation.
Outlook Amidst Global Uncertainties
While the figures reflect a robust export performance, Trade Minister Kim Jung-kwan voiced caution regarding potential global trade uncertainties, highlighting concerns over recent U.S. tariff policies and the rise of protectionist sentiments. He emphasized the government’s commitment to engaged discussions with the U.S. to safeguard national interests while advocating for diversification in export products and markets to fortify against external challenges.
