South Korea's monthly exports topped $120 billion for the first time, fueled by insatiable demand for the semiconductors that power artificial intelligence.
Korea's AI windfall has been spearheaded by Samsung Electronics and SK Hynix, both of which posted record earnings and revenue in the second quarter and are expected to extend that streak through the end of the year.
The world's two largest memory-chip makers have benefited from higher prices amid tight supply and robust demand. Both expect semiconductor shortages to persist through 2028 and possibly 2030, suggesting that Korea's AI-fueled trade and earnings growth will continue for years, setting the stage for stronger, if uneven, growth across the broader economy.
Exports from Asia's fourth-largest economy rose 83.5% from a year earlier to $120.94 billion in September, according to preliminary data released by the Ministry of Trade, Industry and Resources on Thursday.
The pace accelerated from August's 68.7% increase despite fewer working days during the holiday-shortened month, beating the 65.4% growth expected in a Wall Street Journal survey of 13 economists.
Imports rose 26.0% to $71.09 billion, resulting in a record trade surplus of $49.85 billion at the end of the third quarter. That surpassed the previous record of $35.91 billion set in June.
South Korea's trade data, seen as a bellwether of AI demand, show few signs that the AI-driven hunger for chips is ebbing as a torrent of investment in AI infrastructure continues.
Semiconductor exports more than tripled from a year earlier to $60.3 billion in September, hitting another record high, the ministry said.
The stronger-than-expected trade print brought accumulated exports for the first nine months of the year to over $800 billion, pushing the country closer to the unprecedented $1 trillion annual export mark, the ministry said.
Thursday's data showed that exports of petroleum products and ships rose 72% and 30%, respectively, in September from a year earlier, while exports of vehicles and auto parts fell 6% and 7%.
By destination, exports to the U.S. and China both more than doubled in September, whereas those to the Middle East fell 14% amid prolonged geopolitical tensions disrupting traffic through the Strait of Hormuz, a vital global shipping route.