South Korea's exports hit record high in Q3 on strong chip performance

Seoul, Nov 10 (IANS) South Korea's exports reached a record high in the third quarter, driven by robust shipments of semiconductors, government data showed on Monday, amid a "super cycle" in the chip industry prompted by a boom in the artificial intelligence (AI) sector.

Outbound shipments for the July-September period came to $185 billion, up 6.5 per cent from the same period last year, according to the Ministry of Data and Statistics. It marks the largest quarterly export figure since the ministry began compiling relevant data in 2010.

The increase also marks the second consecutive quarter of on-year growth, following a 2.1 per cent rise in the second quarter, reports Yonhap news agency.

"Although unresolved South Korea-U.S. tariff negotiations could have weighed on exports through the third quarter, strong semiconductor shipments led overall export growth," a ministry official said.

In late October, Seoul and Washington finalised a long-awaited agreement on the details of Seoul's $350 billion pledge made in exchange for lower U.S. tariffs during summit talks between President Lee Jae Myung and U.S. President Donald Trump.

The number of exporting companies rose 4.5 percent on-year to 69,808 in the third quarter.

By product type, outbound shipment of capital goods, led by semiconductors, increased 11.2 percent on-year to $111 billion, the data showed.

Consumer goods, led by automobiles, rose 4.9 percent on-year to $23.9 billion, ending four consecutive quarters of decline.

Automobile exports to the United States and China declined in the third quarter, but shipments to Europe increased, driven by robust demand for electric vehicles, the ministry said.

By company size, exports from large corporations advanced 5.1 percent on-year to $122.3 billion, the highest figure since the ministry began compiling such data in 2015.

Medium-sized companies saw exports rise 7 percent on-year to a new quarterly high of $32.3 billion.

The ministry noted that increased semiconductor exports were the main driver for large firms, while growth in semiconductor parts and equipment boosted medium-sized companies' exports.

—IANS

na/