South Korea's Export Demands Driven by Chips, says Latest Data

In March, South Korea's export growth continued for the sixth consecutive month, driven by robust demand for its chips, according to data released on Monday.

Exports increased by 3.1 percent from the same period a year ago, reaching $56.56 billion. However, this growth rate was slightly lower than the 5.2 percent gain anticipated in a Reuters poll of economists. The previous month had seen exports rise by 4.8 percent year-on-year, suggesting a sustained recovery in economic activity despite lingering concerns over consumer sentiment due to higher prices of goods.

Meanwhile, imports in March declined by 12.3 percent compared to the same month last year, totaling $52.28 billion. Although this decline was more significant than the 8.1 percent decrease projected in the poll, it represented a slight improvement from the 13.1 percent drop observed in February.

Notably, overseas sales of chips continued to surge for the fifth consecutive month, recording a remarkable 35.7 percent growth. This marked the strongest performance by value in two years, as highlighted by trade ministry data.

The growth in semiconductor sales is being primarily driven by increasing demand for artificial intelligence-related memory. Major players in the memory chip market, such as Samsung Electronics and SK Hynix, have signaled optimism about improving chip demand for the upcoming year, further supporting the positive outlook for South Korea's export sector.