SEOUL, November 1, 2025 – South Korea’s exports posted a surprising increase in October 2025, buoyed by strong international demand for semiconductors and ships, despite lingering global trade uncertainties related to U.S. tariff policies.

The Ministry of Trade reported that South Korea, Asia’s fourth-largest economy and a leading bellwether for global commerce, saw exports rise 3.6% year-on-year to $59.57 billion, surpassing forecasts from economists in a Reuters poll that had projected a 0.2% decline.

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Semiconductor Exports Lead the Surge

The country’s semiconductor exports jumped 25.4% year-on-year, accelerating from September’s 22.1% growth. According to South Korea’s trade ministry, the increase was driven by strong demand for high-capacity, high-value memory chips, including server-focused HBM and DDR5 products, which also pushed up global chip prices.

Analysts noted that the semiconductor sector remains a key driver of South Korea’s export resilience, reflecting the country’s critical role in supplying the global electronics and data center markets.

“Strong demand for high-value memory chips continues to support exports, making semiconductors the cornerstone of Korea’s export growth this year,” said Park Sang-hyun, economist at iM Securities in Seoul.

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Shipbuilding and Petrochemical Exports Surge

Ship exports also experienced a remarkable 131.2% increase year-on-year, reflecting renewed orders for high-value vessels and LNG carriers. Meanwhile, petrochemical exports rose 12.7%, driven by demand from major industrial buyers in Asia and the Middle East.

These gains were further supported by easing trade uncertainties after the U.S.-South Korea trade agreement reinstated tariffs on automobiles and auto parts at 15%, providing clearer terms for exporters.

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Global Trade Developments and Economic Outlook

Recent geopolitical and trade developments have helped reduce uncertainties for South Korea’s exporters. During a meeting in Busan, U.S. President Donald Trump and Chinese President Xi Jinping agreed to trim certain tariffs on China, alleviating tensions for Seoul’s two largest trading partners.

Park Sang-hyun added:

“Exports are expected to remain robust in Q4, supported by strong semiconductor pricing and ongoing global demand. Average daily exports also indicate steady momentum for the remainder of the year.”

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Imports and Trade Balance

South Korea’s imports declined 1.5% in October, totaling $53.52 billion, reflecting softer domestic demand and lower commodity prices. The monthly trade balance recorded a surplus of $6.06 billion, down from $9.53 billion in September, but still indicating a healthy export-driven economy.

Economists remain optimistic that South Korea’s trade performance will continue to benefit from strong chip exports, shipbuilding orders, and improving global trade conditions, while monitoring external risks such as potential U.S. tariff adjustments and shifts in semiconductor demand.

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Key Takeaways

• October 2025 exports: $59.57 billion, up 3.6% YoY, defying expectations of a decline.
• Semiconductor exports: +25.4% YoY, driven by high-capacity HBM and DDR5 chips.
• Ship exports: +131.2% YoY, marking a strong rebound in the shipbuilding sector.
• Petrochemical exports: +12.7% YoY.
• Imports: $53.52 billion, down 1.5% YoY.
• Trade surplus: $6.06 billion, reflecting continued export strength despite global uncertainty.