South Korea's October exports nearly double, fastest growth since 1974

what happened

South Korea's exports in October almost doubled from a year earlier, climbing 93.7% to $115.28 billion. Reuters reports that this slightly beat the median forecast of 93.2% in its poll of economists and was well above September's 83.7% gain. It was the fastest pace since January 1974.

Chipmakers were the main driver, with overseas semiconductor sales jumping 259.4%. The trade ministry said prices and volumes stayed high as major technology firms keep investing in facilities to compete in artificial intelligence. Computer sales surged 496.6% on rising server demand for AI services. A favourable calendar effect, tied to the different timing of the Chuseok holiday, also added working days.

Imports rose 36.0% to $72.78 billion, following a 26.0% gain in September, and posted the biggest annual increase since January 2022. The trade surplus came in at $42.50 billion, below the record $49.97 billion of the previous month.

why it matters

The data matters as a read on global trade, since South Korea is widely watched as a bellwether for world commerce. Strong demand for chips and server hardware supports chipmakers, while a narrower surplus could affect the won. Part of the jump reflects calendar timing, so the durability of the trend is worth weighing carefully.

market impact

Chipmakers in Korea: strong AI chip demand supports exporters; pressure on USD/KRW is mixed

• ▲Semiconductors pressure up — demand for AI chips and servers stays strong
• ↔USD/KRW mixed — strong exports support the won, but imports are growing faster

tags

instruments