Exports for August hit record high, despite decreases in shipments to U.S., China

South Korea's exports maintained their upward momentum in August.

Chip exports reached an all-time high.

Park Jun-han has the details.

Exports reached an all-time high of 58-point-4 billion U.S. dollars for August, up 1-point-3 percent from a year earlier, according to data released on Monday by the Ministry of Trade, Industry and Energy.

Among the 15 major products South Korea exports, semiconductors, automobiles and ships recorded year-on-year export increases in August.

What stood out the most was semiconductor shipments, which in August reached 15-point-1 billion dollars, up more than 27 percent from the same month last year and surpassing the previous record set in June.

The surge in chip exports was attributed to strong demand for high-value memory semiconductors, such as high-bandwidth memory, driven by increased investment in the AI industry, while memory fixed transaction prices also remained favorable.

Automobile shipments rose 8-point-6 percent to 5-point-5 billion dollars, despite a decline in U.S. shipments, due to the tariffs it has imposed.

The increase was driven by growth in alternative markets such as Europe and the Commonwealth of Independent States.

This marks the highest August performance on record and extends the growth trend to three consecutive months.

Ship exports rose about 12 percent to over 3-point-1 billion dollars, marking six consecutive months of growth as deliveries continued for vessels ordered at high prices in 2022 and 2023.

By region, exports saw growth in three of nine major trading regions.

Although shipments to the United States and China saw a decrease of 12 percent and 2-point-9 percent, respectively, exports to regions such as ASEAN member states and the Commonwealth of Independent States saw an increase of over at least 9 percent.

"Given that exports account for a significant portion of South Korea's economy, the prospect of slower growth due to U.S.-China tensions was quite concerning. However, the overall increase in exports, despite the decline in shipments to the U.S. and China, is definitely a positive sign."

Industry Minister Kim Jung-kwan commented that the three months of steady export growth reflect the competitiveness and determination of South Korean companies, even under challenging conditions such as the U.S. tariffs.

Kim added that the government will announce and implement support measures in early September to minimize the impact of U.S. tariffs.

Park Jun-han, Arirang News.