South Korean chip exports speed up, bringing the $1 trillion annual goal closer

what happened

South Korea's export growth accelerated in October faster than expected, and semiconductors were again the main driver. According to preliminary data from the Ministry of Trade, Industry and Energy, shipments abroad rose 93.7% from a year earlier, to $115.28 billion. September's growth, revised, was 83.7%. A Wall Street Journal survey of 11 economists had pointed to growth of about 86.7%.

Exports for the first ten months of the year reached $930 billion, leaving the country not far from its goal of $1 trillion in a year. Imports rose 36.0% to $72.78 billion. The trade surplus came in at $42.50 billion, above the market consensus of $38.28 billion but below the prior month's record of $49.97 billion.

Chip exports more than tripled from a year earlier to $56.44 billion.

why it matters

Demand for computing chips used in AI infrastructure continues to support revenue at memory makers, including Samsung Electronics and SK Hynix. Investors often read such data as a gauge of the South Korean economy, so it can influence the KOSPI index and the won.

market impact

Samsung and SK Hynix: strong AI chip demand supports revenue expectations across the memory sector

• ▲Samsung Electronics pressure up — strong AI chip demand supports memory revenue
• ▲SK Hynix pressure up — surging chip exports point to solid memory demand

tags

instruments