By Jihoon Lee
SEOUL, July 1 (Reuters) – South Korea’s exports expanded at the strongest pace in nearly half a century last month, smashing forecasts, on a surge in chip sales propelled by the global boom in AI investment.
Exports from Asia’s fourth-largest economy rose 70.9% in June from a year earlier to $102.25 billion, quickening from the 53.4% jump in May and marking the biggest year-on-year increase since October 1978, preliminary trade data showed on Wednesday.
The annual percentage growth rate topped the median 61.0% increase forecast in a Reuters poll, beating all 13 projections provided by economists.
Semiconductor exports surged 199.5% to $44.8 billion, making South Korea the fourth country in the world to reach a monthly export value of $100 billion, after Germany, China and the United States, according to the trade ministry.
“Exports will remain robust in the second half, led by semiconductors. There is no sign of the chip boom waning anywhere, so it won’t easily cool down next year either,” said Park Sang-hyun, an analyst at iM Securities.
“Still, growth rates are seen nearing a peak,” Park added.
Home to the world’s biggest chipmakers Samsung Electronics and SK Hynix, South Korea’s exports have been rising since June 2025 and posting double-digit growth rates from December as global demand for AI investment drives up memory chip prices.
A separate survey showed on Wednesday that South Korea’s factory activity expanded in June for the seventh consecutive month but at a slower pace than the previous month on falling export demand.
In June, computer sales also rose 308.8% on increasing AI investment by major technology firms, while steel products snapped 13 months of decline to rise 9.6% on data center construction. Petroleum products rose 49.8% on high oil prices.
By destination, shipments to China and the U.S. were up 92.1% and 78.6%, respectively, while those to the European Union rose 31.8%. Exports to the Middle East fell 8.4%.
Imports rose 30.1% to $66.10 billion, after rising 20.7% the previous month. That was faster than the 26.3% increase expected by economists and the fastest since May 2022.
The country posted a monthly trade balance of $36.15 billion, the biggest on record, bringing its trade surplus for the first half of the year to $138.3 billion, compared with an annual surplus of $77.4 billion for the whole year of 2025.
(Reporting by Jihoon Lee; Editing by Tom Hogue, Jacqueline Wong and Stephen Coates)