Exports rise for 11th straight month in August on strong chip demand

South Korea's exports extended their on-year gains for the 11th straight month in August, driven by strong demand for semiconductors, data showed Sunday.

Outbound shipments rose 11.4 percent on-year to $57.9 billion last month, according to data compiled by the Ministry of Trade, Industry and Energy.

Imports increased 6 percent on-year to $54 billion, resulting in a trade surplus of $3.83 billion. South Korea has maintained a trade surplus for 15 consecutive months.

By sector, exports of chips jumped 38.8 percent on-year in August to $11.9 billion, marking 10 consecutive months of growth and the highest volume for any August. The ministry attributed the strong chip shipments to the release of new smartphones, with major technology firms expanding investment in the artificial intelligence industry.

Outbound shipments of ships surged 80 percent on-year to reach $2.8 billion, led by stronger demand for liquefied natural gas carriers.

Exports of petroleum products gained 1.4 percent to $4.5 billion, marking six straight months of gains.

However, exports of automobiles fell 4.3 percent to $5.1 billion, as production was partially disrupted due to renovations and wage negotiations. Outbound shipments of steel products also decreased 1.7 percent on-year in August to $2.81 billion, amid increased competition in the global market.

By destination, exports to China rose 7.9 percent to $11.4 billion, driven by strong performance in semiconductors and mobile devices, including foldable smartphones equipped with AI features. Exports to South Korea's top trading partner remained above $10 billion for six consecutive months.

Outbound shipments to the United States also increased 11.1 percent to $10 billion, marking the highest volume for any August, with chips, computers, and secondary batteries leading the overall gains.

Exports to the European Union reached a record high, advancing 16.1 percent to $6.43 billion, supported by biohealth products and mobile devices.

"With overall exports reaching the highest amount for any August and shipments to major trade partners maintaining growth, the country is on the path for record exports," Industry Minister Ahn Duk-geun said in a statement.

Ahn added that geopolitical uncertainties in the Middle East still pose a threat to South Korea's exports, noting that the government will continue to monitor related situations and offer necessary measures.

Outbound shipments decreased 7.4 percent on-year in 2023 amid sluggish performance in chips coupled with global economic uncertainties. (Yonhap)